Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ALTEVA, INC. | |
Entity Central Index Key | 104,777 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,981,352 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating revenues: | ||||
Operating revenues | $ 7,970 | $ 7,571 | $ 23,618 | $ 22,699 |
Operating expenses: | ||||
Cost of services and products (exclusive of depreciation and amortization expense) | 3,201 | 2,924 | 9,687 | 8,843 |
Selling, general and administrative expenses | 6,015 | 4,726 | 16,664 | 15,686 |
Depreciation and amortization | 891 | 931 | 3,383 | 2,753 |
Restructuring costs and other special charges | 600 | 700 | ||
Total operating expenses | 10,107 | 9,181 | 29,734 | 27,982 |
Operating loss | (2,137) | (1,610) | (6,116) | (5,283) |
Other income: | ||||
Interest (expense) income, net | (2) | 20 | 10 | (173) |
Income from investment | 52,373 | |||
Other income (expense), net | 25 | (4) | 1,515 | 23 |
Total other income, net | 23 | 16 | 1,525 | 52,223 |
(Loss) income before income taxes | (2,114) | (1,594) | (4,591) | 46,940 |
Income tax (benefit) expense | (296) | (264) | (753) | 16,982 |
Net (loss) income | (1,818) | (1,330) | (3,838) | 29,958 |
Preferred dividends | 6 | 6 | 19 | 19 |
Net (loss) income applicable to common stock | $ (1,824) | $ (1,336) | $ (3,857) | $ 29,939 |
Basic (loss) earnings per common share | $ (0.31) | $ (0.23) | $ (0.66) | $ 4.96 |
Diluted (loss) earnings per common share | $ (0.31) | $ (0.23) | $ (0.66) | $ 4.96 |
Weighted average shares of common stock used to calculate loss per common share: | ||||
Basic | 5,871 | 5,826 | 5,853 | 5,802 |
Diluted | 5,871 | 5,826 | 5,853 | 5,802 |
Dividends declared per common share | $ 2.60 | |||
Unified Communications [Member] | ||||
Operating revenues: | ||||
Operating revenues | $ 4,718 | $ 4,308 | $ 13,703 | $ 12,753 |
Operating expenses: | ||||
Cost of services and products (exclusive of depreciation and amortization expense) | 2,268 | 1,923 | 6,769 | 5,838 |
Selling, general and administrative expenses | 3,624 | 3,048 | 10,361 | 10,059 |
Depreciation and amortization | 529 | 546 | 2,256 | 1,606 |
Restructuring costs and other special charges | 336 | 392 | ||
Total operating expenses | 6,421 | 5,853 | 19,386 | 17,895 |
Operating loss | (1,703) | (1,545) | (5,683) | (5,142) |
Telephone [Member] | ||||
Operating revenues: | ||||
Operating revenues | 3,252 | 3,263 | 9,915 | 9,946 |
Operating expenses: | ||||
Cost of services and products (exclusive of depreciation and amortization expense) | 933 | 1,001 | 2,918 | 3,005 |
Selling, general and administrative expenses | 2,391 | 1,678 | 6,303 | 5,627 |
Depreciation and amortization | 362 | 385 | 1,127 | 1,147 |
Restructuring costs and other special charges | 264 | 308 | ||
Total operating expenses | 3,686 | 3,328 | 10,348 | 10,087 |
Operating loss | $ (434) | $ (65) | $ (433) | $ (141) |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net (loss) income | $ (1,818) | $ (1,330) | $ (3,838) | $ 29,958 |
Other comprehensive income (loss): Defined benefit pension plans: | ||||
Amortization of prior service costs | 3 | (35) | 8 | (105) |
Amortization of actuarial loss | 258 | 148 | 774 | 515 |
Other comprehensive income | 261 | 113 | 782 | 410 |
Comprehensive (loss) income | $ (1,557) | $ (1,217) | $ (3,056) | $ 30,368 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 6,471 | $ 24,047 |
Trade accounts receivable - net of allowance for uncollectibles - $421 and $402 at September 30, 2015 and December 31, 2014, respectively | 2,919 | 2,737 |
Other accounts receivable | 598 | 488 |
Materials and supplies | 273 | 167 |
Prepaid expenses | 703 | 349 |
Prepaid income taxes | 498 | 311 |
Receivable and deferred income taxes | 1,190 | 43 |
Total current assets | 12,652 | 28,142 |
Property, plant and equipment, net | 11,050 | 12,384 |
Intangibles, net | 4,382 | 5,020 |
Seat licenses, net | 1,537 | 1,543 |
Goodwill | 9,006 | 9,006 |
Other assets | 1,474 | 1,023 |
Total assets | 40,101 | 57,118 |
Current liabilities: | ||
Short-term debt | 405 | 325 |
Accounts payable | 1,317 | 1,216 |
Advance billing and payments | 317 | 274 |
Accrued taxes | 947 | 1,056 |
Pension and postretirement benefit obligations | 276 | 276 |
Accrued wages | 914 | 1,036 |
Deferred revenue | 857 | 705 |
Other accrued expenses | 2,792 | 2,180 |
Total current liabilities | 7,825 | 7,068 |
Long-term debt | 403 | 295 |
Payable and deferred income taxes | 1,008 | 766 |
Pension and postretirement benefit obligations | 8,826 | 8,833 |
Total liabilities | 18,062 | 16,962 |
Shareholders' equity | ||
Preferred shares - $100 par value; authorized and issued shares of 5; $0.01 par value; authorized and unissued shares of 10,000 | 500 | 500 |
Common stock - $0.01 par value; authorized shares of 10,000; issued 6,903 and 6,826 shares issued at September 30, 2015 and December 31, 2014, respectively | 69 | 69 |
Treasury stock - at cost, 902 and 885 common shares at September 30, 2015 and December 31, 2014, respectively | (8,202) | (8,077) |
Additional paid in capital | 14,731 | 14,047 |
Accumulated other comprehensive loss | (3,215) | (3,997) |
Retained earnings | 18,156 | 37,614 |
Total shareholders' equity | 22,039 | 40,156 |
Total liabilities and shareholders' equity | $ 40,101 | $ 57,118 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for uncollectibles | $ 421 | $ 402 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, issued shares | 6,903,000 | 6,826,000 |
Treasury stock, common shares | 902,000 | 885,000 |
Preferred Stock $100 Par Value [Member] | ||
Preferred shares, par value | $ 100 | $ 100 |
Preferred shares, authorized shares | 5,000 | 5,000 |
Preferred shares, issued shares | 5,000 | 5,000 |
Preferred Stock $0.01 Par Value [Member] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized shares | 10,000,000 | 10,000,000 |
Preferred shares, unissued shares | 10,000,000 | 10,000,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (3,838) | $ 29,958 |
Adjustments to reconcile net (loss) income to net cash (used in) operating activities: | ||
Depreciation and amortization | 3,383 | 2,753 |
Stock based compensation expense | 684 | 677 |
Distribution in excess of equity in earnings and gain on sale from equity investment | (49,776) | |
Other non-cash operating activities | (958) | 230 |
Changes in assets and liabilities: | ||
Trade accounts receivable | (182) | (269) |
Prepaid expenses and other assets | (1,204) | (272) |
Accounts payable and accrued expenses | 731 | 922 |
Accrued taxes | (109) | 4,029 |
Pension and postretirement benefit obligations | 775 | 139 |
Net cash (used in) operating activities | (718) | (11,609) |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | (688) | (222) |
Purchase of seat licenses and other intangibles | (62) | (115) |
Proceeds from sale of assets | 33 | |
Proceeds received in excess of income from equity investments | 49,776 | |
Net cash (used in) provided by investing activities | (750) | 49,472 |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from debt | 2,443 | |
Repayments of debt and capital leases | (363) | (12,575) |
Purchase of treasury stock | (125) | (399) |
Dividends (Common and Preferred) | (15,620) | (19) |
Net cash used in financing activities | (16,108) | (10,550) |
Net change in cash and cash equivalents | (17,576) | 27,313 |
Cash and cash equivalents at beginning of period | 24,047 | 1,636 |
Cash and cash equivalents at end of period | 6,471 | 28,949 |
Supplemental disclosure of non-cash investing activities: | ||
Acquisition of equipment and seat licenses under capital leases | 368 | 390 |
Seat licenses acquired, but not paid | $ 291 | $ 188 |
Nature Of Operations And Critic
Nature Of Operations And Critical Accounting Policies And Estimates | 9 Months Ended |
Sep. 30, 2015 | |
Nature Of Operations And Critical Accounting Policies And Estimates [Abstract] | |
Nature Of Operations And Critical Accounting Policies And Estimates | NOTE 1: NATURE OF OPERATIONS AND CRITICAL ACCOUNTING POLICIES AND ESTIMATES Nature of Operations Alteva, Inc. ("Alteva" or the "Company") is a cloud-based communications company that provides Unified Communications ("UC") solutions, including enterprise hosted Voice over Internet Protocol ("VoIP") and operates as a regional Incumbent Local Exchange Carrier ("ILEC") in southern Orange County, New York and northern New Jersey. Unless otherwise indicated or unless the context requires, all references to the Company means the Company and its wholly-owned subsidiaries. The Company delivers cloud-based UC solutions including BroadSoft-based VoIP integrated with Microsoft Lync, Microsoft Exchange, Google Apps for Business, leading customer relationship management ("CRM") applications such as Salesforce.com and Bring-Your-Own-Device ("BYOD") solutions for Mobility, which allows users to take advantage of all of the features available to them no matter where they are located or what device they are using. The Company's ILEC operations consist of providing local and toll telephone service to residential and business customers, Internet high-speed broadband service, and satellite television services provided by DIRECTV®. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information, with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company's management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The operating results for the interim periods are not necessarily indicative of the results that may be expected for the entire year or any other future period. The consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2014. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Significant estimates include, but are not limited to, depreciation and amortization expense, allowance for doubtful accounts, long-lived assets, pension and postretirement expenses, and income taxes. Actual results could differ from those estimates. Revenue Recognition The Company derives its revenue from the sale of UC services as well as traditional telephone services. The Company recognizes revenue when (i) persuasive evidence of an arrangement between the Company and the customer exists, (ii) the delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales or service price is reasonably assured. Revenue is reported net of all applicable sales tax. UC The Company's UC services and solutions consist primarily of its hosted VoIP UC system, certain UC applications, and other professional services associated with the installation and activation. Additionally, the Company offers customers the ability to purchase telephone equipment from the Company directly or independently from external vendors. Multiple element arrangements primarily include the sale of telephone equipment, along with professional services associated with installation, activation and implementation services, as well as follow on hosting services. The Company has concluded that the separate units of accounting in these arrangements consist of (i) the telephone equipment sale and (ii) the professional services provided combined with the follow on hosting services. The professional services provided do not constitute a separate unit of accounting as they do not have value to the customer on a stand-alone basis. Arrangement consideration is allocated to the separate units of accounting based on the relative selling price. The selling price for telephone equipment is based on third-party evidence representing list prices for similar equipment when sold a stand-alone basis. The selling price for professional and hosting services is based on the Company's best estimate of selling price ("BESP"). The Company develops its BESP by considering pricing practices, margin, competition and overall market trends. The Company bills a portion of its monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. Equipment sales associated with the sale of telephone equipment is recognized upon delivery to the customer, as it is considered to be a separate earnings process. The sales are recognized on a gross basis, as the Company is considered the primary obligor in customer transactions among other considerations. Other upfront fees, excluding equipment, along with associated costs, up to but not exceeding these fees, are deferred and recognized over the estimated life of the customer relationship. The Company has estimated its customer relationship life at eight Telephone Revenue is earned from monthly billings to customers for local voice services, long distance, DSL, Internet services, hardware and other services. Revenue is also derived from charges for network access to the local exchange telephone network from subscriber line charges and from contractual arrangements for services such as billing and collection and directory advertising. Revenue is recognized in the period in which service is provided to the customer. Directory advertising revenue is recorded ratably over the life of the directory. With multiple billing cycles, the Company accrues revenue earned but not yet billed at the end of a quarter. The Company also defers services billed in advance and recognizes them as income when earned. The Telephone segment markets competitive service bundles which may include multiple deliverables. The base bundles consist of voice services (including a business or residential phone line), calling features and long distance services and customers may choose to add internet services to a base bundle package. Separate units of accounting within the bundled packages include voice services, long distance and Internet services. Revenue for all services included in bundles is recognized over the same service period, which is the time period in which the service is provided to the customer. Certain revenue is realized under pooling arrangements with other service providers and is divided among the companies based on respective costs and investments to provide the services. The companies that take part in pooling arrangements may adjust their costs and investments for a period of two Revenue from these pooling arrangements which includes Universal Service Funds ("USF") and National Exchange Carrier Association ("NECA") pool settlements, accounted for 5 3 Materials and Supplies The Company's materials and supplies are carried at average cost, net of reserves for obsolescence, and consist principally of telephone equipment, telephone pole and wiring spare parts and other ancillary equipment for resale. Fair Value Fair value is the estimated price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required by accounting standards to provide the disclosure framework for measuring fair value and expanded disclosure about fair value measurements. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: These are inputs, other than quoted prices that are included in Level 1, which are observable in the marketplace throughout the term of the assets or liabilities, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. Goodwill Goodwill represents the excess of the purchase price of an acquired business over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. The Company tests goodwill for impairment at the reporting unit level annually on December 31, or whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If it is determined that an impairment has occurred, the Company records a write down of the carrying value and records the charge for the impairment as an operating expense during the period in which the determination is made. The Company has determined that its operating segments are the applicable reporting units because they are the lowest level at which discrete, reliable financial and cash flow information is regularly reviewed by segment management. The Company only has goodwill that is associated with its UC segment, resulting from the purchase of certain assets and certain liabilities of Alteva, LLC in 2011. The Company is not aware of any events or circumstances that occurred during the nine months ended September 30, 2015 that would have more likely than not reduced the fair value of this reporting unit below its carrying value. Income Taxes The Company records deferred taxes that arise from temporary differences between the financial statement and the tax basis of assets and liabilities. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred tax assets and deferred tax liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company's deferred taxes result principally from differences in the timing of depreciation, in the accounting for pensions and other postretirement benefits, and state net operating loss carryforwards. The process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties, make judgments regarding outcomes and utilize estimates. Management must make judgments currently about such uncertainties and determine estimates of the Company's tax assets and liabilities. To the extent the final outcome differs, future adjustments to the Company's tax assets and liabilities may be necessary. The Company assesses the realizability of its deferred tax assets, taking into consideration future reversals of existing temporary differences, the Company's forecast of future taxable income, and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and the amount of, valuation allowances against the Company's deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowances may be required. Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. Stock-Based Compensation The Company measures the cost of employee services received in exchange for the award of an equity instrument based on the grant-date fair value of the award, with such cost recognized over the applicable vesting period. Accounting Policies There were no material changes to the Company's other accounting policies as presented in Item 8 of its Annual Report on Form 10-K, as amended, for the year ended December 31, 2014. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS In May 2015, the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , followed in July by ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965): Part (I) Fully Benefit-Responsive Investment Contracts, Part (II) Plan Investment Disclosures, Part (III) Measurement Date Practical Expedient . These ASUs simplify or eliminate some of the financial statement reporting and disclosures that were previously required for employee benefit plans. ASU 2015-07 is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and requires retrospective presentation. Parts I and II of ASU 2015-12 are effective for fiscal years beginning after December 15, 2015, and require retrospective presentation. The Company expects the adoption of these standards will affect its employee benefit plan disclosures. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The update provides guidance on simplifying the presentation for debt issuance costs and debt discount and premium. The standard is effective for the annual and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the adoption of ASU 2015-03 to have a significant impact to the disclosure or balance sheet presentation in its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The update provides guidance that previously did not exist under US GAAP about a company's management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures, if applicable. The standard is effective for annual and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a significant impact to the disclosures in its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . The update provides guidance on how to account for certain share-based payment awards where employees would be eligible to vest in the award regardless of whether the employee is still rendering service on the date the performance target is achieved. The standard is effective for annual and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-12 to have a material impact to its consolidated results of operations. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. The guidance was originally effective for annual reporting periods beginning after December 15, 2016, and interim periods therein. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date to annual reporting periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. ASU 2014-09 can be adopted using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements and has not yet selected a transition method nor has it selected an adoption date. selected an adoption date. In April 2014, the FASB issued ASU 2014-08 , Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . ASU 2014-08 revised guidance to only allow disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity's operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations, as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. ASU 2014-08 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted ASU 2014-08 effective January 1, 2015 and the adoption did not have a significant impact on the Company's consolidated financial statement presentation. |
Seat Licenses And Other Intangi
Seat Licenses And Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Seat Licenses And Other Intangible Assets [Abstract] | |
Seat Licenses And Other Intangible Assets | NOTE 3: SEAT LICENSES AND OTHER INTANGIBLE ASSETS Intangible assets with finite lives are amortized over their respective estimated useful lives to their estimated residual value. Identifiable intangible assets that are subject to amortization are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The components of seat licenses are as follows: Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of September 30, 2015 Seat licenses 5 $ 3,399 $ (1,862 ) $ 1,537 Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of December 31, 2014 Seat licenses 5 $ 2,936 $ (1,393 ) $ 1,543 The components of other intangible assets are as follows: Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of September 30, 2015 Customer relationships 8 $ 5,400 $ (2,812 ) $ 2,588 Trade name 15 2,400 (667 ) 1,733 Website 12 95 (34 ) 61 Total $ 7,895 $ (3,513 ) $ 4,382 Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of December 31, 2014 Customer relationships 8 $ 5,400 $ (2,306 ) $ 3,094 Trade name 15 2,400 (547 ) 1,853 Website 12 95 (22 ) 73 Total $ 7,895 $ (2,875 ) $ 5,020 |
Orange County-Poughkeepsie Limi
Orange County-Poughkeepsie Limited Partnership | 9 Months Ended |
Sep. 30, 2015 | |
Orange County-Poughkeepsie Limited Partnership [Abstract] | |
Orange County-Poughkeepsie Limited Partnership | NOTE 4: ORANGE COUNTY-POUGHKEEPSIE LIMITED PARTNERSHIP The Company was a limited partner in the Orange County-Poughkeepsie Limited Partnership (O-P) and had an 8.108 On April 30, 2014, the Company exercised the Put option and sold all of its ownership interest in the O-P for gross proceeds of $ 50 49.8 Pursuant to the equity method accounting of the Companys investment income, the Company is required to record the income from the O-P as an increase to the Companys investment account. On May 26, 2011, the Company entered into an agreement (the "4G Agreement") with Verizon and Cellco Partnership (d/b/a Verizon Wireless), the other limited partner, in the O-P to make certain changes to the O-P partnership agreement. The 4G Agreement provided for guaranteed annual cash distributions to the Company through 2013. The Company was therefore required to apply the cash payments made as a return on its investment when received. As a result of receiving the fixed guaranteed cash distributions from the O-P in excess of the Companys proportionate share of the O-P income, the investment account was reduced to zero zero The following summarizes the income statement (unaudited) for the nine months ended September 30, 2014: For the nine months ended ($ in thousands) September 30, 2014 Net sales $ 170,746 Cellular service cost 80,051 Operating expenses 44,726 Operating income 45,969 Other income 62 Net income $ 46,031 Company's share $ 2,597 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Debt Obligations [Abstract] | |
Debt Obligations | NOTE 5: DEBT OBLIGATIONS Debt obligations consisted of the following at September 30, 2015 and December 31, 2014: As of ($ in thousands) September 30, 2015 December 31, 2014 Short-term debt: Capital leases and other borrowings, current portion $ 405 $ 325 Long-term debt: Capital leases and other borrowings 403 295 Total debt obligations $ 808 $ 620 On November 7, 2014, the Company entered into a demand line of credit with TriState (the Demand Line of Credit) to allow for borrowings up to $ 5.0 outstanding |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 6: INCOME TAXES The effective tax rate for the nine months ended September 30, 2015, and September 30, 2014 was 18 36 As of September 30, 2015 and December 31, 2014, the Company carried a full valuation allowance against its deferred tax assets because management determined that it was not more likely than not that it would realize the benefits of such deferred tax assets. The Company maintains a deferred tax liability related to indefinite lived intangibles. Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company has concluded that there are no material uncertain tax positions requiring recognition in its consolidated financial statements as of September 30, 2015 and December 31, 2014. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. For the nine months ended September 30, 2015 and 2014, the interest expense relating to unrecognized tax benefits was not material. The Company and its subsidiaries file a U.S. federal consolidated income tax return. The U.S. federal statute of limitations remains open for the years 2011 and thereafter. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing the respective return. The impact of any federal changes on state returns remains subject to examination by the relevant states for a period of up to one year after formal notification to the states. |
Pension Plans And Postretiremen
Pension Plans And Postretirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plans And Postretirement Obligations [Abstract] | |
Pension Plans And Postretirement Obligations | NOTE 7: PENSION AND POSTRETIREMENT OBLIGATIONS The components of net periodic cost (benefit) for the three months ended September 30, 2015 and 2014 are as follows: Pension Benefits Postretirement Benefits For the three months ended For the three months ended ($ in thousands) September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Interest cost $ 195 $ 191 $ 24 $ 30 Expected return on plan assets (195 ) (228 ) 7 (6 ) Amortization of prior service cost 14 14 (11 ) (49 ) Recognized actuarial loss 237 142 21 6 Net periodic benefit cost (benefit) $ 251 $ 119 $ 41 $ (19 ) The components of net periodic cost (benefit) for the nine months ended September 30, 2015 and 2014 are as follows Pension Benefits Postretirement Benefits For the nine months ended For the nine months ended ($ in thousands) September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Interest cost $ 586 $ 604 $ 73 $ 89 Expected return on plan assets (586 ) (669 ) 21 (15 ) Amortization of prior service cost 42 42 (34 ) (147 ) Recognized actuarial loss 711 497 63 18 Net periodic benefit cost (benefit) $ 753 $ 474 $ 123 $ (55 ) For the nine months ended September 30, 2015 and September 30, 2014, the Company has contributed $ 0.1 0.2 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | NOTE 8: STOCK BASED COMPENSATION The Company has a shareholder approved long-term incentive plan (the LTIP) to assist the Company and its affiliates in attracting, motivating and retaining selected individuals to serve as employees, directors, consultants and advisors of the Company and its affiliates by providing incentives to such individuals through the ownership and performance of the Companys common stock. There are 1.1 382,198 420,392 100 ten On August 21, 2015, the Compensation Committee of the Board of Directors of the Company (the "Committee") approved amendments to the vesting terms of unvested equity grants for all employees with outstanding grants under the LTIP. All existing employee equity grant award agreements were amended to provide that all such awards vest immediately upon a change in control of the Company. On the same day, the Committee took further action so that all awarded, but unvested restricted stock of non-employee directors vested effective as of the close of business on Monday, August 24, 2015. As a result of these two 0.2 Restricted Stock Awards Stock-based compensation expense for restricted stock awards was $ 0.7 0.7 two three The following table summarizes the restricted common stock activity for the nine months ended September 30, 2015: For the nine months ended September 30, 2015 Weighted Average Fair Shares Value Balance - nonvested at December 31, 2014 124,578 $ 9.84 Granted 80,452 7.37 Vested (91,262 ) 9.27 Forfeited (3,365 ) 9.94 Balance - nonvested at September 30, 2015 110,403 $ 8.52 The total grant-date fair value of restricted stock vested for the nine months ended September 30, 2015 was $ 0.8 0.6 2.0 Stock Options The following tables summarize stock option activity for the nine months ended September 30, 2015, along with stock options exercisable at the end of the period: For the nine months ended September 30, 2015 Weighted Weighted Average Average Contractual Options Shares Exercise Price Life (Years) Outstanding - Beginning of period 327,003 $ 12.18 Forfeited or expired (22,655 ) 11.02 Outstanding - End of period 304,348 $ 12.26 6.11 Vested and Expected to Vest at September 30, 2015 295,218 Exercisable at September 30, 2015 260,555 The fair value of the stock-based awards was estimated using the Black-Scholes model. No As of September 30, 2015, the amount of unrecognized compensation expense related to stock options awards was de minimis. Stock-based compensation expense resulting from stock options granted to employees was de minimis for the nine months ended September 30, 2015 and 2014 and was recorded within selling, general, and administrative expenses. Shareholder Rights Plan On September 2, 2014, in connection with an unsolicited, non-binding acquisition proposal, the Company's Board of Directors (the "Alteva Board") adopted a Stockholder Rights Plan that provides for the distribution of one one th ) of a share of Series A Junior Participating Preferred Stock, par value of $ 0.01 22.20 20 Share Repurchase Program On August 25, 2014, the Alteva Board authorized a repurchase program for up to $ 3.0 On May 14, 2015, the stock repurchase program was terminated by the Company's Board of Directors in connection with approving the special cash dividend of $ 2.60 As of September 30, 2015, the Company repurchased 11,057 0.1 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 9: EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) applicable to common stock by the weighted average number of shares of common stock adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and shares of unvested restricted stock. Diluted earnings (loss) per share exclude all dilutive securities if their effect is anti-dilutive. The Companys restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. Under the two-class method, earnings per share (EPS) is computed by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, earnings are allocated to both shares of common stock and participating securities based on their respective weighted-average shares outstanding for the period. For the three and nine months ended September 30, 2015, the Company experienced a net loss. As a result, the effect of participating securities was excluded from the computation of basic and diluted EPS. The net losses were not allocated because the restricted stockholders are not required to fund losses. The weighted average number of shares of common stock used in basic and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014 was as follows: For the three months ended September 30, (amounts in thousands, except for per share) 2015 2014 NUMERATOR: Net (loss) income applicable to common stock before participating securities $ (1,824 ) $ (1,336 ) Less: income applicable to participating securities (1) - - Net (loss) income applicable to common stock $ (1,824 ) $ (1,336 ) DENOMINATOR: Weighted average shares outstanding - Basic and Diluted (2) 5,871 5,826 EPS: Net (loss) income per share - Basic and Diluted $ (0.31 ) $ (0.23 ) (1) For the three months ended September 30, 2015 and 2014, the Company had 0.1 0.2 (2) For the three months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal For the nine months ended September 30, (amounts in thousands, except for per share) 2015 2014 NUMERATOR: Net (loss) income applicable to common stock before participating securities $ (3,857 ) $ 29,939 Less: income applicable to participating securities (1) - (1,174 ) Net (loss) income applicable to common stock $ (3,857 ) $ 28,765 DENOMINATOR: Weighted average shares outstanding - Basic and Diluted (2) 5,853 5,802 EPS: Net (loss) income per share - Basic and Diluted $ (0.66 ) $ 4.96 (1) For the nine months ended September 30, 2015 and 2014, the Company had 0.1 0.2 (2) For the nine months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | NOTE 10: SHAREHOLDERS EQUITY A summary of the changes to shareholders equity for the nine months ended September 30, 2015 and 2014 is provided below: For the nine months ended September 30, ($ in thousands) 2015 2014 Shareholders' equity, beginning of period $ 40,156 $ 13,006 Net (loss) income (3,838 ) 29,958 Dividends paid on common stock (15,601 ) - Dividends paid on preferred stock (19 ) (19 ) Stock based compensation 684 677 Treasury stock purchases (125 ) (399 ) Changes in pension and postretirement benefit plans 782 410 Shareholders' equity, end of period $ 22,039 $ 43,633 Special Cash Dividend On May 14, 2015 2.60 The record date for the special cash dividend was June 19, 2015 36.0 20 following the payable date for the special cash dividend. Shareholders of record on the record date who sold their shares of the Companys common stock prior to July 1, 2015 were required by the NYSE MKT to give the purchaser of those shares of the Companys common stock a due bill, covering the amount of the dividend, to be redeemed on the date fixed by the NYSE MKT. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | NOTE 11: SEGMENT INFORMATION The Companys two The UC segment is a premier provider of hosted Unified Communications as a Service (UCaaS) including VoIP, hosted Microsoft communication services, fixed mobile convergence and advanced voice applications for a broad customer base including, medium and large-sized businesses and enterprise business customers. The Telephone segment operates as an ILEC in southern Orange County, New York and northern New Jersey. The Telephone segment consists of providing local and toll telephone service, high-speed broadband and fiber Internet access services and satellite video services to residential and business customers. The ILEC service areas are primarily rural and have an estimated population of 50,000 The segment results presented below are not necessarily indicative of the results of operations these segments would have achieved had they operated as stand-alone entities during the periods presented. All intersegment transactions are shown net of eliminations. Segment statement of operations information for the three months ended September 30, 2015 and 2014 is set forth below: For the three months ended September 30, 2015 2014 UC Telephone Consolidated UC Telephone Consolidated Operating Revenues $ 4,718 $ 3,252 $ 7,970 $ 4,308 $ 3,263 $ 7,571 Operating Expenses Cost of services and products 2,268 933 3,201 1,923 1,001 2,924 Selling, general and administrative expense 3,624 2,391 6,015 3,048 1,678 4,726 Loss on disposal, restructuring costs and other special charges - - - 336 264 600 Depreciation and amortization 529 362 891 546 385 931 Total Operating Expenses 6,421 3,686 10,107 5,853 3,328 9,181 Operating Loss (1,703 ) (434 ) (2,137 ) (1,545 ) (65 ) (1,610 ) Interest income (expense), net (2 ) 20 Other income (expense), net 25 (4 ) Loss before income taxes $ (2,114 ) $ (1,594 ) Segment statement of operations information for the nine months ended September 30, 2015 and 2014 is set forth below: For the nine months ended September 30, 2015 2014 UC Telephone Consolidated UC Telephone Consolidated Operating Revenues $ 13,703 $ 9,915 $ 23,618 $ 12,753 $ 9,946 $ 22,699 Operating Expenses Cost of services and products 6,769 2,918 9,687 5,838 3,005 8,843 Selling, general and administrative expense 10,361 6,303 16,664 10,059 5,627 15,686 Loss on disposal, restructuring costs and other special charges - - - 392 308 700 Depreciation and amortization 2,256 1,127 3,383 1,606 1,147 2,753 Total Operating Expenses 19,386 10,348 29,734 17,895 10,087 27,982 Operating Loss (5,683 ) (433 ) (6,116 ) (5,142 ) (141 ) (5,283 ) Interest income (expense), net 10 (173 ) Income from investment - 52,373 Other income, net 1,515 23 (Loss) Income before income taxes $ (4,591 ) $ 46,940 The assets for the UC segment decreased during the nine months ended September 30, 2015 primarily as a result of accelerated depreciation/amortization of office equipment and leasehold improvements associated with the exit of the office lease (see Note 13). |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 12: COMMITMENTS AND CONTINGENCIES The Company is party, from time to time, to various legal proceedings, including patent infringement claims, regulatory investigations and tax examinations incidental to its business. The Company continually monitors these legal proceedings, regulatory investigations and tax examinations to determine the impact and any required accruals. On March 31, 2014, David J. Cuthbert was terminated as President and Chief Executive Officer of Alteva. The Company notified Mr. Cuthbert that his termination was for cause and, as such, Mr. Cuthbert was not entitled to any of the benefits provided for under his employment agreement dated March 5, 2013, including cash severance and the acceleration of vesting on any unvested equity instruments. Mr. Cuthbert disputed the Companys basis for termination and claimed that he was due his full severance benefits. As the Company did not want to incur further legal fees or the risk of distraction of a protracted legal dispute, on October 16, 2014, the Company, through mediation, entered into a settlement agreement and mutual release agreement (the Settlement Agreement) with Mr. Cuthbert. In consideration for Mr. Cuthberts execution of the Settlement Agreement, the Company agreed to pay to Mr. Cuthbert the amount of $ 0.75 During the year ended December 31, 2014, the Company was named as a party to a lawsuit from Sprint regarding a certain tariff charge (IntraMTA carrier charge) billed by Alteva, paid by Sprint over a number of years that had not previously been disputed. Sprint has filed similar lawsuits against other carriers related to the same tariff charges. The Company has filed a motion to dismiss. The amount of the claim filed by Sprint is for $ 0.2 |
Office Relocation
Office Relocation | 9 Months Ended |
Sep. 30, 2015 | |
Office Relocation [Abstract] | |
Office Relocation | NOTE 13: OFFICE RELOCATION In February 2015, the Company entered into an agreement to terminate the lease for its corporate headquarters in Philadelphia, PA. As part of this agreement, the Company was entitled to receive a payment of $ 1.5 zero 0.8 zero 0.4 In connection with the lease termination, the Company entered into a lease for a new corporate headquarters in Philadelphia, PA dated February 27, 2015. The terms of the lease are for 10 0.4 2.5 |
Merger Agreement
Merger Agreement | 9 Months Ended |
Sep. 30, 2015 | |
Merger Agreement [Abstract] | |
Merger Agreement | NOTE 14: MERGER AGREEMENT On September 2, 2015, the Company, entered into an Agreement and Plan of Merger (the Merger Agreement) with MBS Holdings, Inc., a Delaware corporation (Parent), and Arrow Merger Subsidiary, Inc., a New York corporation and a wholly-owned subsidiary of Parent (Merger Sub), pursuant to which Merger Sub will merge with and into the Company (the Merger), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. At the time that the Merger becomes effective (the Effective Time), (i) each issued and outstanding common share of the Company, par value $ 0.01 4.70 5 100 100 Completion of the Merger is subject to various closing conditions, including, among others, (a) the affirmative vote of at least seventy percent ( 70 Shareholders of the Company have been asked to vote on the adoption of the Merger Agreement and the approval of the Merger at the Shareholders' Meeting that is currently scheduled for November 16, 2015. For the nine months ended, the Company incurred $ 0.9 If the proposal to adopt the Merger Agreement is not approved by the Shareholders, or if the Merger is not consummated for any other reason, under specified circumstances, Alteva will be required to pay Parent (a) a termination fee of $ 873,000 (b) the lesser of $ 750,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15: SUBSEQUENT EVENTS On October 8, 2015, Missy Hogan and Jennifer Geiger, as Trustees for the Janice Lynn Livingston Special Needs Trust U/A 2/17/11 (the "Plaintiff"), filed a suit in New York state court against Alteva, Alteva's Board of Directors (Kelly C. Bloss, Brian J. Kelley, Jeffrey D. Alario, Douglas B. Benedict, and Edward J. Morea, together with Alteva, Inc. "Alteva Defendants"), MBS Holdings, Inc. and Arrow Merger Subsidiary, Inc. Plaintiff has requested that the court certify the suit as a class action, but the court has not ruled on the request. In the lawsuit, Plaintiff alleges that Alteva Defendants have breached their fiduciary duties to the public shareholders of Alteva by, among other things, failing to take reasonable steps to obtain and/or ensure that the public shareholders receive adequate and fair value for their shares in the proposed transaction. Plaintiff also alleges that MBS Holdings, Inc. and Arrow Merger Subsidiary, Inc. aided and abetted Alteva Defendants in breaching their fiduciary duties to the public shareholders of Alteva. In addition, in a filing dated October 13, 2015, Plaintiff requested that the court issue an order restraining the November 16, 2015 vote. On October 19, 2015, the court denied Plaintiff's request for injunctive relief, but ordered expedited discovery and a hearing on November 12, 2015 concerning whether a preliminary injunction should be issued enjoining the November 16, 2015 vote. At the November 12, 2015 hearing, the court denied Plaintiff's request for a preliminary injunction. The underlying case remains pending in New York state court. |
Nature Of Operations And Crit22
Nature Of Operations And Critical Accounting Policies And Estimates (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
Nature Of Operations And Critical Accounting Policies And Estimates [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information, with the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company's management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The operating results for the interim periods are not necessarily indicative of the results that may be expected for the entire year or any other future period. The consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2014. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Significant estimates include, but are not limited to, depreciation and amortization expense, allowance for doubtful accounts, long-lived assets, pension and postretirement expenses, and income taxes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company derives its revenue from the sale of UC services as well as traditional telephone services. The Company recognizes revenue when (i) persuasive evidence of an arrangement between the Company and the customer exists, (ii) the delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales or service price is reasonably assured. Revenue is reported net of all applicable sales tax. UC The Company's UC services and solutions consist primarily of its hosted VoIP UC system, certain UC applications, and other professional services associated with the installation and activation. Additionally, the Company offers customers the ability to purchase telephone equipment from the Company directly or independently from external vendors. Multiple element arrangements primarily include the sale of telephone equipment, along with professional services associated with installation, activation and implementation services, as well as follow on hosting services. The Company has concluded that the separate units of accounting in these arrangements consist of (i) the telephone equipment sale and (ii) the professional services provided combined with the follow on hosting services. The professional services provided do not constitute a separate unit of accounting as they do not have value to the customer on a stand-alone basis. Arrangement consideration is allocated to the separate units of accounting based on the relative selling price. The selling price for telephone equipment is based on third-party evidence representing list prices for similar equipment when sold a stand-alone basis. The selling price for professional and hosting services is based on the Company's best estimate of selling price ("BESP"). The Company develops its BESP by considering pricing practices, margin, competition and overall market trends. The Company bills a portion of its monthly recurring hosted service revenue a month in advance. Any amounts billed and collected, but for which the service is not yet delivered, are included in deferred revenue. These amounts are recognized as revenues only when the service is delivered. Equipment sales associated with the sale of telephone equipment is recognized upon delivery to the customer, as it is considered to be a separate earnings process. The sales are recognized on a gross basis, as the Company is considered the primary obligor in customer transactions among other considerations. Other upfront fees, excluding equipment, along with associated costs, up to but not exceeding these fees, are deferred and recognized over the estimated life of the customer relationship. The Company has estimated its customer relationship life at eight Telephone Revenue is earned from monthly billings to customers for local voice services, long distance, DSL, Internet services, hardware and other services. Revenue is also derived from charges for network access to the local exchange telephone network from subscriber line charges and from contractual arrangements for services such as billing and collection and directory advertising. Revenue is recognized in the period in which service is provided to the customer. Directory advertising revenue is recorded ratably over the life of the directory. With multiple billing cycles, the Company accrues revenue earned but not yet billed at the end of a quarter. The Company also defers services billed in advance and recognizes them as income when earned. The Telephone segment markets competitive service bundles which may include multiple deliverables. The base bundles consist of voice services (including a business or residential phone line), calling features and long distance services and customers may choose to add internet services to a base bundle package. Separate units of accounting within the bundled packages include voice services, long distance and Internet services. Revenue for all services included in bundles is recognized over the same service period, which is the time period in which the service is provided to the customer. Certain revenue is realized under pooling arrangements with other service providers and is divided among the companies based on respective costs and investments to provide the services. The companies that take part in pooling arrangements may adjust their costs and investments for a period of two Revenue from these pooling arrangements which includes Universal Service Funds ("USF") and National Exchange Carrier Association ("NECA") pool settlements, accounted for 5 3 |
Materials And Supplies | Materials and Supplies The Company's materials and supplies are carried at average cost, net of reserves for obsolescence, and consist principally of telephone equipment, telephone pole and wiring spare parts and other ancillary equipment for resale. |
Fair Value | Fair Value Fair value is the estimated price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is required by accounting standards to provide the disclosure framework for measuring fair value and expanded disclosure about fair value measurements. Fair value measurements are classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: These are inputs, other than quoted prices that are included in Level 1, which are observable in the marketplace throughout the term of the assets or liabilities, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). The Company does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 1 or Level 2. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired business over the net fair value of identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. The Company tests goodwill for impairment at the reporting unit level annually on December 31, or whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. If it is determined that an impairment has occurred, the Company records a write down of the carrying value and records the charge for the impairment as an operating expense during the period in which the determination is made. The Company has determined that its operating segments are the applicable reporting units because they are the lowest level at which discrete, reliable financial and cash flow information is regularly reviewed by segment management. The Company only has goodwill that is associated with its UC segment, resulting from the purchase of certain assets and certain liabilities of Alteva, LLC in 2011. The Company is not aware of any events or circumstances that occurred during the nine months ended September 30, 2015 that would have more likely than not reduced the fair value of this reporting unit below its carrying value. |
Income Taxes | Income Taxes The Company records deferred taxes that arise from temporary differences between the financial statement and the tax basis of assets and liabilities. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred tax assets and deferred tax liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The Company's deferred taxes result principally from differences in the timing of depreciation, in the accounting for pensions and other postretirement benefits, and state net operating loss carryforwards. The process of providing for income taxes and determining the related balance sheet accounts requires management to assess uncertainties, make judgments regarding outcomes and utilize estimates. Management must make judgments currently about such uncertainties and determine estimates of the Company's tax assets and liabilities. To the extent the final outcome differs, future adjustments to the Company's tax assets and liabilities may be necessary. The Company assesses the realizability of its deferred tax assets, taking into consideration future reversals of existing temporary differences, the Company's forecast of future taxable income, and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and the amount of, valuation allowances against the Company's deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowances may be required. Accounting for uncertainty in income taxes requires uncertain tax positions to be classified as non-current income tax liabilities unless they are expected to be paid within one year. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense. |
Stock-Based Compensation | Stock-Based Compensation The Company measures the cost of employee services received in exchange for the award of an equity instrument based on the grant-date fair value of the award, with such cost recognized over the applicable vesting period. |
Accounting Policies | Accounting Policies There were no material changes to the Company's other accounting policies as presented in Item 8 of its Annual Report on Form 10-K, as amended, for the year ended December 31, 2014. |
Seat Licenses And Other Intan23
Seat Licenses And Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Components Of Other Intangible Assets | Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of September 30, 2015 Customer relationships 8 years $ 5,400 $ (2,812 ) $ 2,588 Trade name 15 years 2,400 (667 ) 1,733 Website 12 years 95 (34 ) 61 Total $ 7,895 $ (3,513 ) $ 4,382 Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of December 31, 2014 Customer relationships 8 years $ 5,400 $ (2,306 ) $ 3,094 Trade name 15 years 2,400 (547 ) 1,853 Website 12 years 95 (22 ) 73 Total $ 7,895 $ (2,875 ) $ 5,020 |
Seat Licenses [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Components Of Other Intangible Assets | Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of September 30, 2015 Seat licenses 5 years $ 3,399 $ (1,862 ) $ 1,537 Estimated Gross Accumulated Net ($ in thousands) Useful Lives Value Amortization Value As of December 31, 2014 Seat licenses 5 years $ 2,936 $ (1,393 ) $ 1,543 |
Orange County-Poughkeepsie Li24
Orange County-Poughkeepsie Limited Partnership (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Orange County-Poughkeepsie Limited Partnership [Abstract] | |
Summarized O-P Income Statement Information | For the nine months ended ($ in thousands) September 30, 2014 Net sales $ 170,746 Cellular service cost 80,051 Operating expenses 44,726 Operating income 45,969 Other income 62 Net income $ 46,031 Company's share $ 2,597 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Obligations [Abstract] | |
Schedule Of Debt Obligations | As of ($ in thousands) September 30, 2015 December 31, 2014 Short-term debt: Capital leases and other borrowings, current portion $ 405 $ 325 Long-term debt: Capital leases and other borrowings 403 295 Total debt obligations $ 808 $ 620 |
Pension Plans And Postretirem26
Pension Plans And Postretirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pension Plans And Postretirement Obligations [Abstract] | |
Components Of Net Periodic Cost (Gain) | Pension Benefits Postretirement Benefits For the three months ended For the three months ended ($ in thousands) September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Interest cost $ 195 $ 191 $ 24 $ 30 Expected return on plan assets (195 ) (228 ) 7 (6 ) Amortization of prior service cost 14 14 (11 ) (49 ) Recognized actuarial loss 237 142 21 6 Net periodic benefit cost (benefit) $ 251 $ 119 $ 41 $ (19 ) Pension Benefits Postretirement Benefits For the nine months ended For the nine months ended ($ in thousands) September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Interest cost $ 586 $ 604 $ 73 $ 89 Expected return on plan assets (586 ) (669 ) 21 (15 ) Amortization of prior service cost 42 42 (34 ) (147 ) Recognized actuarial loss 711 497 63 18 Net periodic benefit cost (benefit) $ 753 $ 474 $ 123 $ (55 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock Based Compensation [Abstract] | |
Schedule Of Restricted Stock Activity | For the nine months ended September 30, 2015 Weighted Average Fair Shares Value Balance - nonvested at December 31, 2014 124,578 $ 9.84 Granted 80,452 7.37 Vested (91,262 ) 9.27 Forfeited (3,365 ) 9.94 Balance - nonvested at September 30, 2015 110,403 $ 8.52 |
Schedule Of Stock Option Activity | For the nine months ended September 30, 2015 Weighted Weighted Average Average Contractual Options Shares Exercise Price Life (Years) Outstanding - Beginning of period 327,003 $ 12.18 Forfeited or expired (22,655 ) 11.02 Outstanding - End of period 304,348 $ 12.26 6.11 Vested and Expected to Vest at September 30, 2015 295,218 Exercisable at September 30, 2015 260,555 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule Of Weighted Average Number Of Shares Of Common Stock Used In Diluted Earnings (Loss) Per Share | For the three months ended September 30, (amounts in thousands, except for per share) 2015 2014 NUMERATOR: Net (loss) income applicable to common stock before participating securities $ (1,824 ) $ (1,336 ) Less: income applicable to participating securities (1) - - Net (loss) income applicable to common stock $ (1,824 ) $ (1,336 ) DENOMINATOR: Weighted average shares outstanding - Basic and Diluted (2) 5,871 5,826 EPS: Net (loss) income per share - Basic and Diluted $ (0.31 ) $ (0.23 ) (1) For the three months ended September 30, 2015 and 2014, the Company had 0.1 million and 0.2 million, respectively in nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the three months ended September 30, 2015 and 2014. (2) For the three months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal. For the nine months ended September 30, (amounts in thousands, except for per share) 2015 2014 NUMERATOR: Net (loss) income applicable to common stock before participating securities $ (3,857 ) $ 29,939 Less: income applicable to participating securities (1) - (1,174 ) Net (loss) income applicable to common stock $ (3,857 ) $ 28,765 DENOMINATOR: Weighted average shares outstanding - Basic and Diluted (2) 5,853 5,802 EPS: Net (loss) income per share - Basic and Diluted $ (0.66 ) $ 4.96 (1) For the nine months ended September 30, 2015 and 2014, the Company had 0.1 million and 0.2 million, respectively in nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the nine months ended September 30, 2015. (2) For the nine months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Summary Of The Changes To Shareholders' Equity | For the nine months ended September 30, ($ in thousands) 2015 2014 Shareholders' equity, beginning of period $ 40,156 $ 13,006 Net (loss) income (3,838 ) 29,958 Dividends paid on common stock (15,601 ) - Dividends paid on preferred stock (19 ) (19 ) Stock based compensation 684 677 Treasury stock purchases (125 ) (399 ) Changes in pension and postretirement benefit plans 782 410 Shareholders' equity, end of period $ 22,039 $ 43,633 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information [Abstract] | |
Segment Reporting Information | For the three months ended September 30, 2015 2014 UC Telephone Consolidated UC Telephone Consolidated Operating Revenues $ 4,718 $ 3,252 $ 7,970 $ 4,308 $ 3,263 $ 7,571 Operating Expenses Cost of services and products 2,268 933 3,201 1,923 1,001 2,924 Selling, general and administrative expense 3,624 2,391 6,015 3,048 1,678 4,726 Loss on disposal, restructuring costs and other special charges - - - 336 264 600 Depreciation and amortization 529 362 891 546 385 931 Total Operating Expenses 6,421 3,686 10,107 5,853 3,328 9,181 Operating Loss (1,703 ) (434 ) (2,137 ) (1,545 ) (65 ) (1,610 ) Interest income (expense), net (2 ) 20 Other income (expense), net 25 (4 ) Loss before income taxes $ (2,114 ) $ (1,594 ) For the nine months ended September 30, 2015 2014 UC Telephone Consolidated UC Telephone Consolidated Operating Revenues $ 13,703 $ 9,915 $ 23,618 $ 12,753 $ 9,946 $ 22,699 Operating Expenses Cost of services and products 6,769 2,918 9,687 5,838 3,005 8,843 Selling, general and administrative expense 10,361 6,303 16,664 10,059 5,627 15,686 Loss on disposal, restructuring costs and other special charges - - - 392 308 700 Depreciation and amortization 2,256 1,127 3,383 1,606 1,147 2,753 Total Operating Expenses 19,386 10,348 29,734 17,895 10,087 27,982 Operating Loss (5,683 ) (433 ) (6,116 ) (5,142 ) (141 ) (5,283 ) Interest income (expense), net 10 (173 ) Income from investment - 52,373 Other income, net 1,515 23 (Loss) Income before income taxes $ (4,591 ) $ 46,940 |
Nature Of Operations And Crit31
Nature Of Operations And Critical Accounting Policies And Estimates (Narrative) (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Significant Accounting Policies [Line Items] | |||
Cost adjustment period | 2 years | ||
Company's Revenues [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of regulatory revenue | 5.00% | 3.00% | |
Customer Relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 8 years | 8 years |
Seat Licenses And Other Intan32
Seat Licenses And Other Intangible Assets (Components Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Value | $ 7,895 | $ 7,895 |
Accumulated Amortization | (3,513) | (2,875) |
Net Value | $ 4,382 | $ 5,020 |
Seat Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | 5 years |
Gross Value | $ 3,399 | $ 2,936 |
Accumulated Amortization | (1,862) | (1,393) |
Net Value | $ 1,537 | $ 1,543 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 8 years | 8 years |
Gross Value | $ 5,400 | $ 5,400 |
Accumulated Amortization | (2,812) | (2,306) |
Net Value | $ 2,588 | $ 3,094 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Gross Value | $ 2,400 | $ 2,400 |
Accumulated Amortization | (667) | (547) |
Net Value | $ 1,733 | $ 1,853 |
Website [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 12 years | 12 years |
Gross Value | $ 95 | $ 95 |
Accumulated Amortization | (34) | (22) |
Net Value | $ 61 | $ 73 |
Orange County-Poughkeepsie Li33
Orange County-Poughkeepsie Limited Partnership (Narrative) (Details) - Orange County-Poughkeepsie Limited Parnership [Member] - USD ($) | Apr. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Apr. 29, 2014 |
Option Indexed to Issuer's Equity [Line Items] | |||||
Equity interest in O-P | 8.108% | ||||
Equity method investment, amount the investment account was reduced to | $ 0 | $ 0 | $ 0 | ||
Put Option [Member] | |||||
Option Indexed to Issuer's Equity [Line Items] | |||||
Proceeds of sale of equity method investment | $ 50,000,000 | ||||
Gain on sale of equity method investment | $ 49,800,000 |
Orange County-Poughkeepsie Li34
Orange County-Poughkeepsie Limited Partnership (Summarized O-P Income Statement Information) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Company's share | $ 52,373 |
Orange County-Poughkeepsie Limited Parnership [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Net sales | 170,746 |
Cellular service cost | 80,051 |
Operating expenses | 44,726 |
Operating income | 45,969 |
Other income | 62 |
Net income | 46,031 |
Company's share | $ 2,597 |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) - Demand Line Of Credit [Member] - USD ($) | Sep. 30, 2015 | Nov. 07, 2014 |
Line of Credit Facility [Line Items] | ||
Credit facility, amount available | $ 5,000,000 | |
Outstanding Line of Credit balance | $ 0 |
Debt Obligations (Schedule Of D
Debt Obligations (Schedule Of Debt Obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Obligations [Abstract] | ||
Short-term debt | $ 405 | $ 325 |
Capital leases and other borrowings | 403 | 295 |
Total debt obligations | $ 808 | $ 620 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||
Statutory federal income tax rate | 18.00% | 36.00% |
Pension Plans And Postretirem38
Pension Plans And Postretirement Obligations (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plans And Postretirement Obligations [Abstract] | ||
Company contributions | $ 0.1 | $ 0.2 |
Pension Plans And Postretirem39
Pension Plans And Postretirement Obligations (Components Of Net Periodic Cost (Gain)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 195 | $ 191 | $ 586 | $ 604 |
Expected return on plan assets | (195) | (228) | (586) | (669) |
Amortization of prior service cost | 14 | 14 | 42 | 42 |
Recognized actuarial loss | 237 | 142 | 711 | 497 |
Net periodic benefit cost (benefit) | 251 | 119 | 753 | 474 |
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 24 | 30 | 73 | 89 |
Expected return on plan assets | 7 | (6) | 21 | (15) |
Amortization of prior service cost | (11) | (49) | (34) | (147) |
Recognized actuarial loss | 21 | 6 | 63 | 18 |
Net periodic benefit cost (benefit) | $ 41 | $ (19) | $ 123 | $ (55) |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) $ / shares in Units, $ in Thousands | Sep. 02, 2014$ / sharesshares | Sep. 30, 2015USD ($)itemshares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | May. 14, 2015$ / shares | Dec. 31, 2014USD ($)shares | Aug. 25, 2014USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock option or stock appreciation term, maximum | 10 years | ||||||
Share repurchase program, authorized amount | $ | $ 3,000 | ||||||
Shares repurchased | 902,000 | 902,000 | 885,000 | ||||
Shares repurchased, value | $ | $ 8,202 | $ 8,202 | $ 8,077 | ||||
Special cash dividend, amount per share | $ / shares | $ 2.60 | ||||||
August 25, 2014 Share Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares repurchased | 11,057 | 11,057 | |||||
Shares repurchased, value | $ | $ 100 | $ 100 | |||||
Series A Junior Participating Preferred Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of rights per share | 1 | ||||||
Number of shares per right | 0.001 | ||||||
Preferred shares, par value | $ / shares | $ 0.01 | ||||||
Purchase price per share | $ / shares | $ 22.20 | ||||||
Percentage of common stock needed to be acquired for rights to become exercisable | 20.00% | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | 700 | $ 700 | |||||
Total fair value of vested restricted stock | $ | 800 | ||||||
Total unrecognized stock options compensation expense | $ | $ 600 | $ 600 | |||||
Weighted average period of recognition for total unrecognized stock options compensation expense | 2 years | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted | 0 | ||||||
Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for plan | 1,100,000 | 1,100,000 | |||||
Shares available for grant | 382,198 | 382,198 | 420,392 | ||||
Minimum exercise price per share of stock options as a percentage of grant date fair market value | 100.00% | ||||||
Stock-based compensation expense | $ | $ 200 | ||||||
Number of changes to stock based compensation | item | 2 | ||||||
Minimum [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Maximum [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule Of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance - Beginning of period, Shares | 124,578 |
Granted, Shares | 80,452 |
Vested, Shares | (91,262) |
Forfeited, Shares | (3,365) |
Balance - End of period, Shares | 110,403 |
Balance - Beginning of period, Grant Date Weighted Average Price per Share | $ / shares | $ 9.84 |
Granted, Grant Date Weighted Average per Share | $ / shares | 7.37 |
Vested, Grant Date Weighted Average per Share | $ / shares | 9.27 |
Forfeited, Grant Date Weighted Average per Share | $ / shares | 9.94 |
Balance - End of period, Grant Date Weighted Average Price per Share | $ / shares | $ 8.52 |
Stock Based Compensation (Sch42
Stock Based Compensation (Schedule Of Stock Option Activity) (Details) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding - Beginning of period, Shares | 327,003 |
Forfeited or expired, Shares | (22,655) |
Outstanding - End of period, Shares | 304,348 |
Vested and Expected to Vest at June 30, 2015, shares | 295,218 |
Exercisable at June 30, 2015, Shares | 260,555 |
Outstanding - Beginning of period, Weighted Average Exercise Price | $ / shares | $ 12.18 |
Forfeited or expired, Weighted Average Exercise Price | $ / shares | 11.02 |
Outstanding - End of period, Weighted Average Exercise Price | $ / shares | $ 12.26 |
Outstanding - End of period, Weighted Average Contractual Life (Years) | 6 years 1 month 10 days |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule Of Weighted Average Number Of Shares Of Common Stock Used In Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Earnings (Loss) Per Share [Abstract] | |||||||||
Net (loss) income applicable to common stock and participating securities | $ (1,824) | $ (1,336) | $ (3,857) | $ 29,939 | |||||
Less: income applicable to participated securities | [1] | (1,174) | |||||||
Net (loss) income applicable to common stock | $ (1,824) | $ (1,336) | $ (3,857) | $ 28,765 | |||||
Weighted average shares outstanding - Basic and Diluted | 5,871 | [2] | 5,826 | [2] | 5,853 | [3] | 5,802 | [3] | |
Net (loss) income per share - Basic and Diluted | $ (0.31) | $ (0.23) | $ (0.66) | $ 4.96 | |||||
Outstanding participating securities | 100 | 200 | 100 | 200 | |||||
[1] | For the nine months ended September 30, 2015 and 2014, the Company had 0.1 million and 0.2 million, respectively in nonvested participating securities. As the participating securities do not participate in losses, there was no allocation of loss for the nine months ended September 30, 2015. | ||||||||
[2] | For the three months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal | ||||||||
[3] | For the nine months ended September 30, 2015 and 2014, potentially dilutive shares related to out of the money common stock options that were excluded from EPS, as their effect was anti-dilutive, were nominal. |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | May. 14, 2015 | |
Shareholders' Equity [Abstract] | ||
Dividend declaration date | May 14, 2015 | |
Special cash dividend, amount per share | $ 2.60 | |
Dividend record date | Jun. 19, 2015 | |
Percent of closing stock price | 36.00% | |
Percent of dividend declared in a per share amount | 20.00% |
Shareholders' Equity (Summary O
Shareholders' Equity (Summary Of The Changes To Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shareholders' Equity [Abstract] | ||||
Shareholders' equity, beginning of period | $ 40,156 | $ 13,006 | ||
Net (loss) income | $ (1,818) | $ (1,330) | (3,838) | 29,958 |
Dividends paid on common stock | (15,601) | |||
Dividends paid on preferred stock | (19) | (19) | ||
Stock based compensation | 684 | 677 | ||
Treasury stock purchases | (125) | (399) | ||
Changes in pension and postretirement benefit plans | 782 | 410 | ||
Shareholders' equity, end of period | $ 22,039 | $ 43,633 | $ 22,039 | $ 43,633 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015segmentitem | |
Segment Information [Abstract] | |
Number of segments | segment | 2 |
Estimated population | 50,000 |
Segment Information (Segment In
Segment Information (Segment Income Statement Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Operating Revenues | $ 7,970 | $ 7,571 | $ 23,618 | $ 22,699 |
Cost of services and products | 3,201 | 2,924 | 9,687 | 8,843 |
Selling, general and administration expense | 6,015 | 4,726 | 16,664 | 15,686 |
Loss on disposal, restructuring costs and other special charges | 600 | 700 | ||
Depreciation and amortization | 891 | 931 | 3,383 | 2,753 |
Total operating expenses | 10,107 | 9,181 | 29,734 | 27,982 |
Operating Loss | (2,137) | (1,610) | (6,116) | (5,283) |
Interest income (expense), net | (2) | 20 | 10 | (173) |
Income from investment | 52,373 | |||
Other income, net | 25 | (4) | 1,515 | 23 |
(Loss) income before income taxes | (2,114) | (1,594) | (4,591) | 46,940 |
Unified Communications [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 4,718 | 4,308 | 13,703 | 12,753 |
Cost of services and products | 2,268 | 1,923 | 6,769 | 5,838 |
Selling, general and administration expense | 3,624 | 3,048 | 10,361 | 10,059 |
Loss on disposal, restructuring costs and other special charges | 336 | 392 | ||
Depreciation and amortization | 529 | 546 | 2,256 | 1,606 |
Total operating expenses | 6,421 | 5,853 | 19,386 | 17,895 |
Operating Loss | (1,703) | (1,545) | (5,683) | (5,142) |
Telephone [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 3,252 | 3,263 | 9,915 | 9,946 |
Cost of services and products | 933 | 1,001 | 2,918 | 3,005 |
Selling, general and administration expense | 2,391 | 1,678 | 6,303 | 5,627 |
Loss on disposal, restructuring costs and other special charges | 264 | 308 | ||
Depreciation and amortization | 362 | 385 | 1,127 | 1,147 |
Total operating expenses | 3,686 | 3,328 | 10,348 | 10,087 |
Operating Loss | $ (434) | $ (65) | $ (433) | $ (141) |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Oct. 28, 2014 | Dec. 31, 2014 |
Sprint Lawsuit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Claim amount | $ 200 | |
The Settlement Agreement [Member] | ||
Commitments And Contingencies [Line Items] | ||
Settlement amount | $ 750 |
Office Relocation (Details)
Office Relocation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||
Proceeds from lease termination agreement | $ 1,500 | ||||
Income from lease termination | $ 25 | $ (4) | $ 1,515 | $ 23 | |
Accelerated depreciation | 0 | $ 800 | |||
Term of lease | 10 years | ||||
Minimum rental payments due in next twelve months | $ 400 | $ 400 | |||
Percentage increase in lease payment | 2.50% | 2.50% | |||
Unified Communications [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Accelerated deferred rent | $ 0 | $ 400 |
Merger Agreement (Narrative) (D
Merger Agreement (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock Merger Consideration [Member] | ||
Common stock, par value | 0.01 | |
Merger Consideration in cash, per share | $ 4.70 | |
Affirmative vote, percentage | 70.00% | |
Pending Merger Costs | $ 900,000 | |
Termination Fee | 873,000 | |
Required payment | $ 750,000 | |
5 % Series Preferred Stock Member | Common Stock Merger Consideration [Member] | ||
Percentage of Preferred Shares | 5.00% | |
Merger Consideration in cash, per share | $ 100 | |
Preferred shares, par value | $ 100 |