Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | OTELCO INC. | ||
Entity Central Index Key | 1,288,359 | ||
Trading Symbol | otel | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 26,169,277 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 0 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 3,346,689 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 3,570 | $ 10,538 |
Accounts receivable: | ||
Due from subscribers, net of allowance for doubtful accounts of $226 and $187, respectively | 4,647 | 5,035 |
Other | 1,875 | 1,528 |
Materials and supplies | 2,700 | 2,184 |
Prepaid expenses | 3,122 | 2,912 |
Total current assets | 15,914 | 22,197 |
Property and equipment, net | 50,888 | 49,271 |
Goodwill | 44,976 | 44,976 |
Intangible assets, net | 1,328 | 1,785 |
Investments | 1,632 | 1,821 |
Other assets | 201 | 222 |
Total assets | 114,939 | 120,272 |
Current liabilities | ||
Accounts payable | 1,619 | 1,477 |
Accrued expenses | 4,803 | 4,730 |
Advance billings and payments | 1,684 | 1,487 |
Customer deposits | 58 | 62 |
Current maturity of long-term notes payable, net of debt issuance cost | 3,891 | 6,071 |
Total current liabilities | 12,055 | 13,827 |
Deferred income taxes | 18,939 | 28,280 |
Advance billings and payments | 2,367 | 1,987 |
Other liabilities | 13 | 26 |
Long-term notes payable, less current maturities and debt issuance cost | 80,058 | 86,860 |
Total liabilities | 113,432 | 130,980 |
Stockholders' equity | ||
Additional paid in capital | 4,285 | 4,186 |
Accumulated deficit | (2,812) | (14,927) |
Total stockholders' equity (deficit) | 1,507 | (10,708) |
Total liabilities and stockholders' equity | 114,939 | 120,272 |
Common Class A [Member] | ||
Stockholders' equity | ||
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 3,346,689 and 3,291,750 shares, respectively | $ 34 | $ 33 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 226 | $ 187 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 3,346,689 | 3,291,750 |
Common stock, outstanding (in shares) | 3,346,689 | 3,291,750 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 68,526 | $ 68,944 | $ 71,102 |
Operating expenses | |||
Cost of services | 31,395 | 31,875 | 33,123 |
Selling, general and administrative expenses | 10,147 | 10,234 | 9,846 |
Depreciation and amortization | 7,377 | 8,022 | 8,878 |
Total operating expenses | 48,919 | 50,131 | 51,847 |
Income from operations | 19,607 | 18,813 | 19,255 |
Other income (expense) | |||
Interest expense | (13,249) | (10,634) | (7,894) |
Loss on debt prepayment penalty | (2,303) | ||
Other income | 204 | 625 | 1,067 |
Total other expense | (15,348) | (10,009) | (6,827) |
Income before income tax benefit (expense) | 4,259 | 8,804 | 12,428 |
Income tax benefit (expense) | 7,856 | (3,658) | (4,944) |
Net income | $ 12,115 | $ 5,146 | $ 7,484 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 3,346,689 | 3,283,177 | 3,239,306 |
Diluted (in shares) | 3,445,632 | 3,404,696 | 3,313,641 |
Basic net income per common share (in dollars per share) | $ 3.62 | $ 1.57 | $ 2.31 |
Diluted net income per common share (in dollars per share) | $ 3.52 | $ 1.51 | $ 2.26 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 2,881,154 | 232,780 | |||
Balance at Dec. 31, 2014 | $ 29 | $ 2 | $ 3,519 | $ (27,557) | $ (24,007) |
Net income | 7,484 | 7,484 | |||
Stock-based compensation expense | 362 | 362 | |||
Issuance of Common Stock (in shares) | 133,945 | ||||
Issuance of Common Stock | $ 1 | 1 | |||
Balance (in shares) at Dec. 31, 2015 | 3,015,099 | 232,780 | |||
Balance at Dec. 31, 2015 | $ 30 | $ 2 | 3,881 | (20,073) | (16,160) |
Net income | 5,146 | 5,146 | |||
Stock-based compensation expense | 415 | 415 | |||
Issuance of Common Stock (in shares) | 43,871 | ||||
Issuance of Common Stock | $ 1 | (1) | |||
Tax withholdings paid on behalf of employees for restricted stock units | (109) | (109) | |||
Conversion of Class B Stock to Class A Stock (in shares) | 232,780 | (232,780) | |||
Conversion of Class B Stock to Class A Stock | $ 2 | $ (2) | |||
Balance (in shares) at Dec. 31, 2016 | 3,291,750 | ||||
Balance at Dec. 31, 2016 | $ 33 | 4,186 | (14,927) | (10,708) | |
Net income | 12,115 | 12,115 | |||
Stock-based compensation expense | 308 | 308 | |||
Issuance of Common Stock (in shares) | 54,939 | ||||
Issuance of Common Stock | $ 1 | 1 | |||
Tax withholdings paid on behalf of employees for restricted stock units | (209) | (209) | |||
Balance (in shares) at Dec. 31, 2017 | 3,346,689 | ||||
Balance at Dec. 31, 2017 | $ 34 | $ 4,285 | $ (2,812) | $ 1,507 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 12,115 | $ 5,146 | $ 7,484 |
Adjustments to reconcile net income to cash flows provided by operating activities: | |||
Depreciation | 7,001 | 7,137 | 7,678 |
Amortization | 376 | 885 | 1,200 |
Amortization of loan costs | 4,823 | 1,397 | 880 |
Loss on debt prepayment penalty | 2,303 | ||
Provision (benefit) for deferred income taxes | (9,449) | 2,001 | 1,882 |
Excess tax benefit from stock-based compensation | 108 | 173 | 144 |
Provision for uncollectible accounts receivable | 357 | 348 | 442 |
Stock-based compensation | 308 | 415 | 362 |
Payment in kind interest - subordinated debt | 266 | 273 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (316) | (4) | (11) |
Materials and supplies | (516) | (278) | 9 |
Prepaid expenses and other assets | (189) | (100) | 878 |
Accounts payable and accrued expenses | 215 | (178) | 227 |
Advance billings and payments | 577 | 1,428 | (45) |
Other liabilities | (17) | (6) | (117) |
Net cash from operating activities | 17,962 | 18,637 | 21,013 |
Cash flows used in investing activities: | |||
Acquisition and construction of property and equipment | (8,510) | (6,879) | (6,612) |
Retirement of investment | (1) | (1) | |
Net cash used in investing activities | (8,511) | (6,880) | (6,612) |
Cash flows used in financing activities: | |||
Loan origination costs | (2,144) | (5,242) | (516) |
Principal repayment of long-term notes payable | (98,927) | (103,052) | (12,083) |
Proceeds from loan refinancing | 87,000 | 100,300 | |
Debt prepayment penalty fees | (2,303) | ||
CoBank equity account retirement | 164 | ||
Tax withholdings paid on behalf of employees for restricted stock units | (209) | (109) | |
Net cash used in financing activities | (16,419) | (8,103) | (12,599) |
Net increase (decrease) in cash and cash equivalents | (6,968) | 3,654 | 1,802 |
Cash and cash equivalents, beginning of period | 10,538 | 6,884 | 5,082 |
Cash and cash equivalents, end of period | 3,570 | 10,538 | 6,884 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 9,287 | 8,364 | 7,016 |
Income taxes paid | 1,802 | 1,923 | 2,414 |
Conversion of Class B common stock to Class A common stock | 2 | ||
Issuance of Class A common stock | $ 1 | $ 1 | $ 1 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Otelco Inc. (together with its consolidated subsidiaries, the “Company”) provides a broad range of telecommunication services on a retail and wholesale basis. These services include local and long distance calling; network access to and from the Company’s customers; data transport; digital high-speed and legacy dial-up internet access; cable and Internet Protocol television; other telephone related services; and cloud hosting and managed services. The principal markets for these services are business and residential customers residing in and adjacent to the exchanges the Company serves in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia. In addition, the Company serves business customers throughout Maine and New Hampshire and provides legacy dial-up internet service throughout the states of Maine and Missouri. The Company offers various communications services that are sold to economically similar customers in a comparable manner of distribution. The Company also offers cloud hosting and managed services for small and mid-sized companies who rely on mission-critical software applications. The majority of customers buy multiple services, often bundled together at a single price. The Company views, manages and evaluates the results of its operations from the various communications services as one one Refinancings On January 25, 2016, five $85.0 five $5.0 five $15.0 February 17, 2016, $15.3 $85.0 $15.3 April 30, 2016. ’s Class B common stock were automatically converted into an equal number of shares of the Company’s Class A common stock. The term loan facility under the Senior Loan Agreement required principal payments of $1.0 April 1, 2016. not $15 $140 second 2017, $77.9 $8.5 $7.5 2017 2018, On November 2, 2017, $92 five $87.0 $5.0 $20.0 $28 $3.7 |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Otelco Inc. and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC (“BTC”); Brindlee Mountain Telephone LLC; CRC Communications LLC (“CRC”); Granby Telephone LLC; Hopper Telecommunications LLC; Mid-Maine Telecom LLC; Mid-Maine TelPlus LLC; Otelco Mid-Missouri LLC (“MMT”) and its wholly-owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC (“OTP”); Pine Tree Telephone LLC; Saco River Telephone LLC; Shoreham Telephone LLC; and War Telephone LLC. The accompanying consolidated financial statements include the accounts of Otelco Inc. and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. Use of Estimates The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America , which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may Significant accounting estimates include the recoverability of goodwill, identified intangibles, long-term assets, deferred tax valuation allowances and allowance for bad debt. Regulatory Accounting Th e Company follows the accounting for regulated enterprises, which is now part of Accounting Standards Codification (“ASC”) 980, Regulated Operations 980” 980 980 980 1 2 980 December 31, 2017 , and 2016, 80.5% and 77.0%, 980. The Company is subject to reviews and audits by regulatory agencies. The effect of these reviews and audits, if any, will be recorded in the period in which they first Intangible Assets and Goodwill Intangible assets consist primarily of the fair value s of customer related intangibles, non-compete agreements and long-term customer contracts acquired in connection with business combinations. Goodwill represents the excess of total acquisition cost over the assigned value of net identifiable tangible and intangible assets acquired through various business combinations, less any impairment. Due to the regulatory accounting required by ASC 980, not 805, Business Combinations 2004. 47 32.2000, The Company performs a quarterly review of its identified intangible assets to determine if facts and circumstances exist which indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not If such facts and circumstances do exist, the Company assesses the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. ASC 350, Intangibles Goodwill and Other 350” 1 Revenue Recognition Local services not distance in bundles is billed at a flat rate and recognized in the appropriate period . Network access . Network access revenue is derived from several sources. Revenue for interstate access services is received through tariffed access charges filed with the Federal Communications Commission (the “FCC”). These access charges are billed by the Company to interstate interexchange carriers and retail voice customers. A portion of the access charge revenue received by the Company is based upon its actual cost of providing interstate access service, plus a return on the investment dedicated to providing that service. The balance of the access charge revenue received by the Company is based upon the nationwide average schedule costs of providing interstate access services. Rates for the Company’s competitive subsidiaries are set by FCC rule to be no , which calculates the cost to provide broadband services to rural areas of each state. Ten of the Company’s RLECs receive ACAM revenues. One of the Company’s RLECs does not Revenue for intrastate access service is received through tariffed access charges billed by the Company to the originating intrastate carrier using access rates filed with the Alabama Public Service Commission (the “APSC”), the Maine Public Utilities Commission (the “MPUC”), the Massachusetts Department of Telecommunications and Cable (the “MDTC”), the Missouri Public Service Commission (the “MPSC”), the New Hampshire Public Utilities Commission (the “NHPUC”), the Vermont Public Utilities Commission (the “VPUC”) and the West Virginia Public Service Commission (the “WVPSC”) and are retained by the Company. Revenue for the intrastate/interLATA access service is received through tariffed access charges as filed with the APSC, MDTC, MPSC, MPUC, NHPUC, VPUC and WVPSC. These access charges are billed to the intrastate carriers and are retained by the Company. Revenue for terminating and originating long distance service is received through charges for providing usage of the local exchange network. Toll revenues are recognized when services are rendered. The FCC’s Intercarrier Compensation order, issued in October 2011, July 2013. 2014, six Revenues for interstate access services are based on reimbursement of costs and an allowed rate of return. Revenues of this nature are received from the USAC through the National Exchange Carrier Association (“NECA”), who files tariffs with the FCC on behalf of the NECA member companies, in the form of monthly settlements, or bill and keep of access charges. Such revenues amounted to 21.9%, 18.6%, 17.4% December 31, 2017, 2016, 2015, March 2016, 25 2016 25 2021. Internet, tran sport service, cable and satellite television and cloud hosting and managed services December 31, 2017 , and 2016 , of $2.4 $628 Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality, short-term m oney market instruments and highly liquid debt instruments with an original maturity of three Accounts Receivable The Company extends credit to its business and residential customers based upon a written credit policy. Service interruption is the primary vehicle for controlling losses. Accounts receivable are recorded at the invoiced amount and do not Materials and Supplies Materials and supplies are stated at the lower of cost or market value. Cost is determined using an average cost basis. P roperty and Equipment Regulated property and equipment is stated at original cost less any impairment. Unregulated property and equipment purchased through acquisitions is stated at its fair value at the date of acquisition less any impairment. Expenditu res for improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed when incurred. Depreciation of regulated property and equipment is computed principally using the straight-line method over useful lives determined by the APSC for Alabama locations, while the other regulated locations use similar useful lives as Alabama. Depreciation of unregulated property and equipment primarily employs the straight-line method over industry standard estimated useful lives. Long-Lived Assets The Company reviews its long-lived assets for impairment at each balance sheet date and whenever events or changes in circumstances indicate that the carrying amount of an a sset should be assessed. To determine if impairment exists, the Company estimates the future undiscounted cash flows expected to result from the use of the asset being reviewed for impairment. If the sum of these expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss in accordance with guidance included in ASC 360, Property, Plant, and Equipment Deferred Financing Costs Deferred financing and loan costs consist of debt issuance costs incurred in obtaining long-term financing, which are amortized using the effective inter est method. Amortization of deferred financing and loan costs is classified as “Interest expense”. When amendments to debt agreements are considered to extinguish existing debt per guidance included in ASC 470, Debt Income Taxes The Company accounts for income taxes using the asset and liability approach in accordance with guidance included in ASC 740, Income Taxes 740” . The asset and liability approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities using enacted tax rates. Any changes in enacted tax rates or tax laws are included in the provision for income taxes in the period of enactment. A valuation allowance is provided when it is more likely than not not The provision for income taxes consists of an amount for the taxes currently payable and a provision for the tax consequences deferred to future periods. Interest and penalties related to income tax matters would be recognized in income tax expense. As of December 31, 2017, no The Company conducts business in multiple jurisdictions and, as a result, one l, various state and local jurisdictions. All tax years since 2014 Fair Value of Financial Instruments The carrying value s of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaids, accounts payable and accrued liabilities, approximate their fair values as of December 31, 2017 , and 2016 , due to their short term nature. The fair value of debt instruments at December 31, 2017 , and 2016 , is disclosed in the notes to the consolidated financial statements. Income per Common Share The Co mpany computes net income per common share in accordance with the provisions included in ASC 260, Earnings per Share 260” 260, Recently Adopted Accounting Pronouncements In August 2014, 2014 15, Presentation of Financial Statements – Going Concern (Subtopic 205 40 December 15, 2016, not In March 2016, 2016 09 , Compensation–Stock Compensation (Topic 718 December 15, 2016, March 31, 2016 not Recent Accounting Pronou ncements Du ring 2016 2017, 2016 01 2016 20 2017 01 2017 15, , these ASUs provide technical corrections or simplifications to existing guidance and to specialized industries or entities and therefore have minimal, if any, impact on the Company. In May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606 2014 09” 2014 09 December 15, 2016, not July 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 one 2014 09, first 2018 first 2017. In March 2016, 2016 08, Revenue from Contracts with Customers (Topic 606 2014 09, April 2016, 2016 10, Revenue from Contracts with Customers (Topic 606 2014 09, May 2016, 2016 12, Revenue from Contracts with Customers (Topic 606 2014 09, December 2016, 2016 20, Technical Corrections and Improvements to Topic 606, 2014 09, In January 2017, 2017 03, Accounting Changes and Error Corrections (Topic 250 323 2017 03” 2014 09 2014 09 2014 09 June 2016. 2014 09’s 2014 09, 2014 09 five 74.3% 2014 09. 2014 09. As of December 31, 2017, ’s ongoing evaluation of new transactions and contracts, the Company has substantially completed its evaluation of the expected impact of adopting ASU 2014 09 adopt ASU 2014 09 2018 not . In February 2016, 2016 02 , Leases (Topic 842 2016 02” . December 15, 2018, In January 2017, 2017 03, 2016 02 2016 02 not In August 2016, 2016 15 , Statement of Cash Flows (Topic 230 230, December 15, 2017, 2018 not . In January 2017, 2017 04, Intangibles-Goodwill and Other (Topic 350 2017 04” 2 2017 04 December 15, 2019, January 1, 2017. not In May 2017, 2017 09, Compensation-Stock Compensation (Topic 718 2017 09” 2017 09 718, Stock Compensation 2017 09 December 15, 2017, not 2017 09 2018 not . In May 2017, 2017 10, Service Concession Arrangements (Topic 853 2017 10” not 840, Leases 2017 10 not December 15, 2017, 2018 not |
Note 3 - Goodwill and Intangibl
Note 3 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill and Intangible Assets ASC 350 ed for impairment annually, unless potential interim indicators exist that could result in impairment. Although the Company has only one three December 31, 2017, 87.2%, 12.8% 1 .0%, October 1, 2017. DCF”) method under the income approach as well as the guideline public company method (“GPCM”) under the market approach to value the reporting units. The Company utilized weightings of 75.0% 25.0% no October 1, 2017, 2016 . The Company determined that no October 1, 2017 December 31, 2017 , indicated that a further assessment was necessary. There was no nts of goodwill for Alabama, Missouri and New England during 2017 2016, $39,199 $5,758 $19 , as of both December 31, 2017 , and 2016. The Company also found no December 31, 2017, 2016, Intangible assets are summarized as follows (in thousands): December 31, 2016 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,254 ) $ 1,771 Contract relationships 19,600 (19,600 ) - Non-competition 107 (101 ) 6 Trade name 23 (15 ) 8 Total $ 43,755 $ (41,970 ) $ 1,785 December 31, 2017 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,705 ) $ 1,320 Contract relationships 19,600 (19,600 ) - Non-competition 107 (105 ) 2 Trade name 23 (17 ) 6 Total $ 43,755 $ (42,427 ) $ 1,328 These intangible assets had a range of 2 15 December 31, 2017 , for each of the following periods (in thousands): Aggregate amortization expense for the years ended December 31, 2015 $ 815 2016 $ 578 2017 $ 458 Expected amortization expense for the years ending December 31, 2018 $ 408 2019 389 2020 372 2021 159 2022 – Total $ 1,328 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and Equipment A summary of property and equipment is shown as follows (in thousands, except estimated life): Estimated December 31, Life 2017 2016 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 12,999 12,812 Telephone equipment 6 - 20 239,539 234,422 Cable television equipment 7 12,417 12,199 Furniture and equipment 8 - 14 3,087 3,067 Vehicles 7 - 9 6,992 6,855 Computer software equipment 5 - 7 16,830 16,648 Internet equipment 5 3,940 3,891 Total property and equipment 296,968 291,058 Accumulated depreciation and amortization (246,080 ) (241,787 ) Net property and equipment $ 50,888 $ 49,271 Depreciation expense for t he years ended December 31, 2017, 2016 , and 2015 , was $7,001 $7,137 $7,678 82 $307 $385 December 31, 2017, 2016 , and 2015, . |
Note 5 - Other Accounts Receiva
Note 5 - Other Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | 5. Other Accounts Receivable Other accounts receivable consist of the following (in thousands) as of: December 31, 2017 2016 Carrier access bills receivable $ 282 $ 380 NECA receivable 1,238 1,028 Receivables from Alabama Service Fund 53 56 Other miscellaneous 302 64 $ 1,875 $ 1,528 |
Note 6 - Investments
Note 6 - Investments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Investment [Text Block] | 6. Investments Investments consist of the following (in thousands) as of: December 31, 2017 2016 Investment in CoBank stock $ 1,311 $ 1,475 Rental property 245 271 Other miscellaneous 76 75 $ 1,632 $ 1,821 The investment in CoBank stock is carried at historical cost due to no no |
Note 7 - Notes Payable
Note 7 - Notes Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. Notes Payable Notes payable consist s of the following (in thousands, except percentages) as of: December 31, 2017 December 31, 2016 Senior Loan Agreement with Cerberus Business Finance, LLC; variable interest rate of 8.75% at December 31, 2016, interest was monthly, paid in arrears on the first business day of each month. The Senior Loan Agreement was secured by the total assets of the subsidiary guarantors. The Senior Loan Agreement was fully repaid on November 2, 2017. $ — $ 82,000 Debt issuance cost — (3,889 ) Senior notes payable, net of debt issuance cost $ — $ 78,111 December 31, December 31, 2017 2016 Subordinated Loan Agreement with NewSpring Mezzanine Capital III, L.P.; fixed interest rate due monthly of 12.00% at December 31, 2016. Payment in kind (“PIK”) interest rate of 2.00% per annum. PIK interest accrued was added to the principal amount then outstanding on the last business day of each quarter. The Subordinated Loan Agreement was fully repaid on November 2, 2017. $ — $ 15,300 PIK interest added to principal — 273 Less: Long-term portion of debt issuance cost — (753 ) Long-term notes payable, net of debt issuance cost $ — $ 14,820 December 31, December 31, Current Long-term 2017 2016 New Credit Facility with CoBank, ACB; variable interest rate of 6.07% at December 31, 2017, interest is quarterly, paid in arrears on the last business day of each quarter. The New Credit Facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due November 3, 2022. $ 4,350 $ 81,562 $ 85,912 $ — Debt issuance cost (459 ) (1,504 ) (1,963 ) — N otes payable, net of debt issuance cost $ 3,891 $ 80,058 $ 83,949 $ — Associated with the Previous Credit Facility, the Company had $2.7 third $141 $880 December 31, 2016 , and 2015, $140 $15 December 31, 2016, Associated with the Senior Loan Agreement, the Company had $4.9 $896 $978 December 31, 2017, 2016, $3,070 $14 December 31, 2017, Associated with the Subordinated Loan Agreement, the Comp any had $892 $133 $139 December 31, 2017, 2016, $621 $14 December 31, 2017, Associated with the New Credit Facility, the Company has $2.0 $75 December 31, 2017, The Company had a revolving credit facility on December 31, 2015 , of $5.0 no December 31, 2015. February 17, 2016. 0.50% $3 $25 December 31, 2016, 2015, The Company had a revolving credit facility on December 31, 2016, $5.0 no December 31, 2016. November 2, 2017. 0.75% $32 $33 December 31, 2017, 2016, The revolving credit facility associated with the Company’s New Credit Facility had a maximum borrowing capacity of $5.0 December 31, 2017. November 3, 2022. no December 31, 2017. 0.50% $4 December 31, 2017. Maturities of notes payable for the next five no xcess cash flow payments, are as follows (in thousands): 2018 $ 4,350 2019 4,350 2020 4,350 2021 4,350 2022 68,512 Total $ 85,912 A total of $2.0 of debt issuance cost is amortized over the life of the loan and is recorded net of the notes payable on the consolidated balance sheets. The Company ’s notes payable agreements are subject to certain financial covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. As of December 31, 2017, |
Note 8 - Acquisition
Note 8 - Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 8. Acquisition On January 2, 2014 , the Company’s wholly-owned subsidiary, CRC, acquired substantially all of the assets of Reliable Networks of Maine, LLC (“Reliable Networks”), a Portland, Maine-based provider of cloud hosting and managed services for small and mid-sized companies who rely on mission-critical software applications . CRC paid $0.5 , and all applicable contingent consideration was paid in Class A common stock in March 2015 . |
Note 9 - Income Tax
Note 9 - Income Tax | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. Income Tax Income tax expense for the years ended December 31, 2017, 2016, 2015 For the Years Ended December 31, 2017 2016 2015 Federal income taxes Current $ 1,201 $ 1,176 $ 2,552 Deferred (9,332 ) 1,872 1,661 Total federal tax (benefit) expense (8,131 ) 3,048 4,213 State income taxes Current 284 308 366 Deferred (9 ) 302 365 Total state tax expense 275 610 731 Total income tax (benefit) expense $ (7,856 ) $ 3,658 $ 4,944 Public Law No: 115 97, December 22, 2017. 35% 21%. 740 21%. The Securities and Exchange Commission staff issued Staff Accounting Bulletin (“SAB”) 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act 118” 118, the Company is still analyzing certain aspects of the Tax Act and refining its calculations. The analysis could potentially affect the measurement of these deferred tax balances or give rise to new deferred tax amounts. Based on the Company’s current understanding of the Tax Act, it has made a reasonable estimate of the Tax Act’s effects on the Company’s deferred tax balances. As of December 31, 2017, $9.3 one The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax li abilities as of December 31, 2017, 2016, December 31, 2017 2016 Deferred tax liabilities: Amortization $ (11,058 ) $ (16,588 ) Depreciation (8,408 ) (11,966 ) Prepaid expense (151 ) (444 ) State net operating loss carryforwards and adjustments (266 ) (279 ) Other (8 ) (13 ) Total deferred tax liabilities $ (19,891 ) $ (29,290 ) Deferred tax assets: Deferred compensation $ 131 $ 232 Advance payments 520 245 Bad debt 71 121 Other 230 412 Total net deferred tax assets $ 952 $ 1,010 As of December 31, 2017, $0 $33 December 31, 2016, $0 $25 no December 31, 2017 , or December 31, 2016. December 31, 2017, no The effective income tax rates as of December 31, 2017 , 2016 , and 2015 , were ( 184.5 , 41.5% 39.8%, ASC 740 r ended December 31, 2017, 2016 , and 2015, not 2014 Tot al income tax expense was different than that computed by applying U.S. federal income tax rates to income before income taxes for the years ended December 31, 2017, 2016 , and 2015. For the Years Ended December 31, 2017 2016 2015 Federal income tax at statutory rate 35 % 35 % 35 % Federal income tax provision at statutory rate $ 1,491 $ 3,081 $ 4,349 State income tax provision, net of federal income tax effects 177 397 475 Federal tax rate change (9,336 ) — — Other (188 ) 180 120 (Benefit) provision for income taxes $ (7,856 ) $ 3,658 $ 4,944 Effective income tax rate (184.5 )% 41.5 % 39.8 % |
Note 10 - Employee Benefit Prog
Note 10 - Employee Benefit Program | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 10. Employee Benefit Program Employees of all subsidiaries except BTC participate in a Company-sponsored defined contribution savings plan under Section 401 not $18.5 $18 $18 2017, 2016 2015, 4.5% 2017, 2016 2015. December 31, 2017, 2016 , and 2015, $486 $508 $520 The employees of BTC participate in a multiemployer Retirement and Security Program (“ RSP”) as a defined benefit plan and a Savings Plan (“SP”) provided through the National Telecommunications Cooperative Association. The risks associated with participating in a multiemployer plan are different from a single-employer plan. Contributions to the multiemployer plan by the Company may may 1 .0% 2017, 2016 2015, 4.5% 401 no 2017, 2016 2015. December 31, 2017, 2016 , and 2015, $16 $16 $15 . |
Note 11 - Net Income Per Common
Note 11 - Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 11. Net Income per Common Share Basic net i ncome per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per common share reflects the potential dilution that would occur should all of the shares of Class A common stock underlying restricted stock units (“RSUs”), as well as all of the shares of Class A common stock, for which the Company has accrued an expense, that may A re conciliation of the common shares for purposes of the calculation of the Company’s basic and diluted net income per common share is as follows (weighted average number of common shares outstanding in whole numbers and net income in thousands): For the Years Ended December 31, 2017 2016 2015 Weighted average number of common shares outstanding - basic 3,346,689 3,283,177 3,239,306 Effect of dilutive securities 98,943 121,519 74,335 Weighted average number of common shares and potential 3,445,632 3,404,696 3,313,641 Net income $ 12,115 $ 5,146 $ 7,484 Net income per common share - basic $ 3.62 $ 1.57 $ 2.31 Net income per common share - diluted $ 3.52 $ 1.51 $ 2.26 |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 12. Fair Value Measurement The Company adopted ASC 820, Fair Value Measurements and Disclosures 820” ASC 820 t date. ASC 820 three ● Level 1 ● Level 2 consists of observable market data, other than that included in Level 1, ● Level 3 may not if there is little available market data and the Company’s own assumptions are considered by management to be the best available information. Fair Value Notes Payable The fair value of the Company ’s notes payable is determined using various methods, including quoted market prices for notes with similar terms of maturity, which is a Level 2 3 820 not The carrying amounts and estimated fair values of notes payable are as follows (in thousands): Senior Loan Agreement Carrying Value Fair Value Notes payable December 31, 2016 $ 82,000 $ 83,989 Notes payable December 31, 2017 $ — $ — Subordinated Loan Agreement Carrying Value Fair Value Notes payable December 31, 2016 $ 15,573 $ 15,605 Notes payable December 31, 2017 $ — $ — New Credit Facility Carrying Value Fair Value Notes payable December 31, 2016 $ — $ — Notes payable December 31, 2017 $ 85,912 $ 86,562 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and Contingencies From time to time, the Company may dministrative hearings of the APSC, the MPUC, the MDTC, the MPSC, the NHPUC, the VPUC and the WVPSC, relating primarily to rate making and customer service requirements. In addition, the Company may none Sprint Communications L.P. (“ Sprint”), MCI Communications Services, Inc. (“MCI”) and Verizon Select Services, Inc. (“Verizon”) have filed more than 60 400 two one May 2, 2014, September 5, 2014, one September 5, 2014. November 17, 2015, May 5, 2016, 3 3” not 3 3 March 22, 2017, 3’s 3 May 3, 2017, June 1, 2017, September 1, 2017. not February 23, 2018. not On November 10, 2014, king a ruling by the FCC that: ( 1 2 may 3 4 may not March 11, 2015, No not Leases Minimum future rental commitments under non-cancellable operating leases, primarily for real property and office facilities , at December 31, 2017 , consist of the following (in thousands): 2018 $ 491 2019 465 2020 443 2021 442 2022 331 Thereafter 620 Total $ 2,792 Rent expense for t he years ended December 31, 2017, 2016 , and 2015 , was $539 $562 $582 |
Note 14 - Stock Plans and Stock
Note 14 - Stock Plans and Stock Associated With Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 14. Stock Plans and Stock Associated with Acquisition The Company has previously granted RSUs underlying 366,356 These RSUs (or a portion thereof) vest with respect to each recipient over a one three 366,356 162,716 December 31, 2016 . During the twelve December 31, 2017, no no The following table summarizes RSU activity as of December 31, 2017: Weighted Average Grant Date RSUs Fair Value Outstanding at December 31, 2016 203,640 $ 4.57 Granted — $ — Vested (88,287 ) $ 4.66 Forfeited or cancelled (16,410 ) $ 4.40 Outstanding at December 31, 2017 98,943 $ 4.51 CRC acquired substantially all of the assets of Reliabl e Networks on January 2, 2014. 2015 one December 31, 2014, 68,233 March 12, 2015, December 31, 2016, 2015, not no December 31, 2016. Stock-based compensation expense related t o RSUs and the Earn-Out was $308 $415 December 31, 2017, 2016, no 2014 As of December 31, 2017 , and 2016, $343 $503 2019. As stated above, the Company continues to estimate forfeitures in calculating the expense related to stock-based compensation, as opposed to only recognizing these forfeitures and the corresponding reduction in expense as they occur. The tax benefit recognized with respect to RSUs and the Earn-Out during the year s ended December 31, 2017 , and 2016 , was $108 $173 . |
Note 15 - Selected Quarterly Fi
Note 15 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 15. Selected Quarterly Financial Data (unaudited and in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2016: Revenue $ 17,490 $ 17,232 $ 17,389 $ 16,833 Operating income $ 4,746 $ 4,899 $ 4,561 $ 4,607 Net income $ 1,750 $ 1,324 $ 1,125 $ 947 Net income per common share - basic $ 0.53 $ 0.40 $ 0.34 $ 0.30 Net income per common share - diluted $ 0.52 $ 0.39 $ 0.33 $ 0.27 Fiscal 2017: Revenue $ 17,380 $ 17,406 $ 16,946 $ 16,794 Operating income $ 5,021 $ 5,053 $ 4,989 $ 4,544 Net income $ 1,608 $ 1,536 $ 1,589 $ 7,382 Net income per common share - basic $ 0.48 $ 0.46 $ 0.67 $ 2.21 Net income per common share - diluted $ 0.47 $ 0.45 $ 0.65 $ 2.14 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Refinancings On January 25, 2016, five $85.0 five $5.0 five $15.0 February 17, 2016, $15.3 $85.0 $15.3 April 30, 2016. ’s Class B common stock were automatically converted into an equal number of shares of the Company’s Class A common stock. The term loan facility under the Senior Loan Agreement required principal payments of $1.0 April 1, 2016. not $15 $140 second 2017, $77.9 $8.5 $7.5 2017 2018, On November 2, 2017, $92 five $87.0 $5.0 $20.0 $28 $3.7 |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Otelco Inc. and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC (“BTC”); Brindlee Mountain Telephone LLC; CRC Communications LLC (“CRC”); Granby Telephone LLC; Hopper Telecommunications LLC; Mid-Maine Telecom LLC; Mid-Maine TelPlus LLC; Otelco Mid-Missouri LLC (“MMT”) and its wholly-owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC (“OTP”); Pine Tree Telephone LLC; Saco River Telephone LLC; Shoreham Telephone LLC; and War Telephone LLC. The accompanying consolidated financial statements include the accounts of Otelco Inc. and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America , which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may Significant accounting estimates include the recoverability of goodwill, identified intangibles, long-term assets, deferred tax valuation allowances and allowance for bad debt. |
Intercompany Profit to Regulated Affiliates, Policy [Policy Text Block] | Regulatory Accounting Th e Company follows the accounting for regulated enterprises, which is now part of Accounting Standards Codification (“ASC”) 980, Regulated Operations 980” 980 980 980 1 2 980 December 31, 2017 , and 2016, 80.5% and 77.0%, 980. The Company is subject to reviews and audits by regulatory agencies. The effect of these reviews and audits, if any, will be recorded in the period in which they first |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets and Goodwill Intangible assets consist primarily of the fair value s of customer related intangibles, non-compete agreements and long-term customer contracts acquired in connection with business combinations. Goodwill represents the excess of total acquisition cost over the assigned value of net identifiable tangible and intangible assets acquired through various business combinations, less any impairment. Due to the regulatory accounting required by ASC 980, not 805, Business Combinations 2004. 47 32.2000, The Company performs a quarterly review of its identified intangible assets to determine if facts and circumstances exist which indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not If such facts and circumstances do exist, the Company assesses the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. ASC 350, Intangibles Goodwill and Other 350” 1 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Local services not distance in bundles is billed at a flat rate and recognized in the appropriate period . Network access . Network access revenue is derived from several sources. Revenue for interstate access services is received through tariffed access charges filed with the Federal Communications Commission (the “FCC”). These access charges are billed by the Company to interstate interexchange carriers and retail voice customers. A portion of the access charge revenue received by the Company is based upon its actual cost of providing interstate access service, plus a return on the investment dedicated to providing that service. The balance of the access charge revenue received by the Company is based upon the nationwide average schedule costs of providing interstate access services. Rates for the Company’s competitive subsidiaries are set by FCC rule to be no , which calculates the cost to provide broadband services to rural areas of each state. Ten of the Company’s RLECs receive ACAM revenues. One of the Company’s RLECs does not Revenue for intrastate access service is received through tariffed access charges billed by the Company to the originating intrastate carrier using access rates filed with the Alabama Public Service Commission (the “APSC”), the Maine Public Utilities Commission (the “MPUC”), the Massachusetts Department of Telecommunications and Cable (the “MDTC”), the Missouri Public Service Commission (the “MPSC”), the New Hampshire Public Utilities Commission (the “NHPUC”), the Vermont Public Utilities Commission (the “VPUC”) and the West Virginia Public Service Commission (the “WVPSC”) and are retained by the Company. Revenue for the intrastate/interLATA access service is received through tariffed access charges as filed with the APSC, MDTC, MPSC, MPUC, NHPUC, VPUC and WVPSC. These access charges are billed to the intrastate carriers and are retained by the Company. Revenue for terminating and originating long distance service is received through charges for providing usage of the local exchange network. Toll revenues are recognized when services are rendered. The FCC’s Intercarrier Compensation order, issued in October 2011, July 2013. 2014, six Revenues for interstate access services are based on reimbursement of costs and an allowed rate of return. Revenues of this nature are received from the USAC through the National Exchange Carrier Association (“NECA”), who files tariffs with the FCC on behalf of the NECA member companies, in the form of monthly settlements, or bill and keep of access charges. Such revenues amounted to 21.9%, 18.6%, 17.4% December 31, 2017, 2016, 2015, March 2016, 25 2016 25 2021. Internet, tran sport service, cable and satellite television and cloud hosting and managed services December 31, 2017 , and 2016 , of $2.4 $628 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality, short-term m oney market instruments and highly liquid debt instruments with an original maturity of three |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company extends credit to its business and residential customers based upon a written credit policy. Service interruption is the primary vehicle for controlling losses. Accounts receivable are recorded at the invoiced amount and do not |
Inventory, Policy [Policy Text Block] | Materials and Supplies Materials and supplies are stated at the lower of cost or market value. Cost is determined using an average cost basis. |
Property, Plant and Equipment, Policy [Policy Text Block] | P roperty and Equipment Regulated property and equipment is stated at original cost less any impairment. Unregulated property and equipment purchased through acquisitions is stated at its fair value at the date of acquisition less any impairment. Expenditu res for improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed when incurred. Depreciation of regulated property and equipment is computed principally using the straight-line method over useful lives determined by the APSC for Alabama locations, while the other regulated locations use similar useful lives as Alabama. Depreciation of unregulated property and equipment primarily employs the straight-line method over industry standard estimated useful lives. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company reviews its long-lived assets for impairment at each balance sheet date and whenever events or changes in circumstances indicate that the carrying amount of an a sset should be assessed. To determine if impairment exists, the Company estimates the future undiscounted cash flows expected to result from the use of the asset being reviewed for impairment. If the sum of these expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss in accordance with guidance included in ASC 360, Property, Plant, and Equipment |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing and loan costs consist of debt issuance costs incurred in obtaining long-term financing, which are amortized using the effective inter est method. Amortization of deferred financing and loan costs is classified as “Interest expense”. When amendments to debt agreements are considered to extinguish existing debt per guidance included in ASC 470, Debt |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability approach in accordance with guidance included in ASC 740, Income Taxes 740” . The asset and liability approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities using enacted tax rates. Any changes in enacted tax rates or tax laws are included in the provision for income taxes in the period of enactment. A valuation allowance is provided when it is more likely than not not The provision for income taxes consists of an amount for the taxes currently payable and a provision for the tax consequences deferred to future periods. Interest and penalties related to income tax matters would be recognized in income tax expense. As of December 31, 2017, no The Company conducts business in multiple jurisdictions and, as a result, one l, various state and local jurisdictions. All tax years since 2014 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying value s of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaids, accounts payable and accrued liabilities, approximate their fair values as of December 31, 2017 , and 2016 , due to their short term nature. The fair value of debt instruments at December 31, 2017 , and 2016 , is disclosed in the notes to the consolidated financial statements. |
Earnings Per Share, Policy [Policy Text Block] | Income per Common Share The Co mpany computes net income per common share in accordance with the provisions included in ASC 260, Earnings per Share 260” 260, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In August 2014, 2014 15, Presentation of Financial Statements – Going Concern (Subtopic 205 40 December 15, 2016, not In March 2016, 2016 09 , Compensation–Stock Compensation (Topic 718 December 15, 2016, March 31, 2016 not Recent Accounting Pronou ncements Du ring 2016 2017, 2016 01 2016 20 2017 01 2017 15, , these ASUs provide technical corrections or simplifications to existing guidance and to specialized industries or entities and therefore have minimal, if any, impact on the Company. In May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606 2014 09” 2014 09 December 15, 2016, not July 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 one 2014 09, first 2018 first 2017. In March 2016, 2016 08, Revenue from Contracts with Customers (Topic 606 2014 09, April 2016, 2016 10, Revenue from Contracts with Customers (Topic 606 2014 09, May 2016, 2016 12, Revenue from Contracts with Customers (Topic 606 2014 09, December 2016, 2016 20, Technical Corrections and Improvements to Topic 606, 2014 09, In January 2017, 2017 03, Accounting Changes and Error Corrections (Topic 250 323 2017 03” 2014 09 2014 09 2014 09 June 2016. 2014 09’s 2014 09, 2014 09 five 74.3% 2014 09. 2014 09. As of December 31, 2017, ’s ongoing evaluation of new transactions and contracts, the Company has substantially completed its evaluation of the expected impact of adopting ASU 2014 09 adopt ASU 2014 09 2018 not . In February 2016, 2016 02 , Leases (Topic 842 2016 02” . December 15, 2018, In January 2017, 2017 03, 2016 02 2016 02 not In August 2016, 2016 15 , Statement of Cash Flows (Topic 230 230, December 15, 2017, 2018 not . In January 2017, 2017 04, Intangibles-Goodwill and Other (Topic 350 2017 04” 2 2017 04 December 15, 2019, January 1, 2017. not In May 2017, 2017 09, Compensation-Stock Compensation (Topic 718 2017 09” 2017 09 718, Stock Compensation 2017 09 December 15, 2017, not 2017 09 2018 not . In May 2017, 2017 10, Service Concession Arrangements (Topic 853 2017 10” not 840, Leases 2017 10 not December 15, 2017, 2018 not |
Note 3 - Goodwill and Intangi23
Note 3 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2016 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,254 ) $ 1,771 Contract relationships 19,600 (19,600 ) - Non-competition 107 (101 ) 6 Trade name 23 (15 ) 8 Total $ 43,755 $ (41,970 ) $ 1,785 December 31, 2017 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,705 ) $ 1,320 Contract relationships 19,600 (19,600 ) - Non-competition 107 (105 ) 2 Trade name 23 (17 ) 6 Total $ 43,755 $ (42,427 ) $ 1,328 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Aggregate amortization expense for the years ended December 31, 2015 $ 815 2016 $ 578 2017 $ 458 Expected amortization expense for the years ending December 31, 2018 $ 408 2019 389 2020 372 2021 159 2022 – Total $ 1,328 |
Note 4 - Property and Equipme24
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Estimated December 31, Life 2017 2016 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 12,999 12,812 Telephone equipment 6 - 20 239,539 234,422 Cable television equipment 7 12,417 12,199 Furniture and equipment 8 - 14 3,087 3,067 Vehicles 7 - 9 6,992 6,855 Computer software equipment 5 - 7 16,830 16,648 Internet equipment 5 3,940 3,891 Total property and equipment 296,968 291,058 Accumulated depreciation and amortization (246,080 ) (241,787 ) Net property and equipment $ 50,888 $ 49,271 |
Note 5 - Other Accounts Recei25
Note 5 - Other Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2017 2016 Carrier access bills receivable $ 282 $ 380 NECA receivable 1,238 1,028 Receivables from Alabama Service Fund 53 56 Other miscellaneous 302 64 $ 1,875 $ 1,528 |
Note 6 - Investments (Tables)
Note 6 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Investment [Table Text Block] | December 31, 2017 2016 Investment in CoBank stock $ 1,311 $ 1,475 Rental property 245 271 Other miscellaneous 76 75 $ 1,632 $ 1,821 |
Note 7 - Notes Payable (Tables)
Note 7 - Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2018 $ 4,350 2019 4,350 2020 4,350 2021 4,350 2022 68,512 Total $ 85,912 |
Senior Notes [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2017 December 31, 2016 Senior Loan Agreement with Cerberus Business Finance, LLC; variable interest rate of 8.75% at December 31, 2016, interest was monthly, paid in arrears on the first business day of each month. The Senior Loan Agreement was secured by the total assets of the subsidiary guarantors. The Senior Loan Agreement was fully repaid on November 2, 2017. $ — $ 82,000 Debt issuance cost — (3,889 ) Senior notes payable, net of debt issuance cost $ — $ 78,111 December 31, December 31, 2017 2016 Subordinated Loan Agreement with NewSpring Mezzanine Capital III, L.P.; fixed interest rate due monthly of 12.00% at December 31, 2016. Payment in kind (“PIK”) interest rate of 2.00% per annum. PIK interest accrued was added to the principal amount then outstanding on the last business day of each quarter. The Subordinated Loan Agreement was fully repaid on November 2, 2017. $ — $ 15,300 PIK interest added to principal — 273 Less: Long-term portion of debt issuance cost — (753 ) Long-term notes payable, net of debt issuance cost $ — $ 14,820 |
New Credit Facility [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, December 31, Current Long-term 2017 2016 New Credit Facility with CoBank, ACB; variable interest rate of 6.07% at December 31, 2017, interest is quarterly, paid in arrears on the last business day of each quarter. The New Credit Facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due November 3, 2022. $ 4,350 $ 81,562 $ 85,912 $ — Debt issuance cost (459 ) (1,504 ) (1,963 ) — N otes payable, net of debt issuance cost $ 3,891 $ 80,058 $ 83,949 $ — |
Note 9 - Income Tax (Tables)
Note 9 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Years Ended December 31, 2017 2016 2015 Federal income taxes Current $ 1,201 $ 1,176 $ 2,552 Deferred (9,332 ) 1,872 1,661 Total federal tax (benefit) expense (8,131 ) 3,048 4,213 State income taxes Current 284 308 366 Deferred (9 ) 302 365 Total state tax expense 275 610 731 Total income tax (benefit) expense $ (7,856 ) $ 3,658 $ 4,944 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2017 2016 Deferred tax liabilities: Amortization $ (11,058 ) $ (16,588 ) Depreciation (8,408 ) (11,966 ) Prepaid expense (151 ) (444 ) State net operating loss carryforwards and adjustments (266 ) (279 ) Other (8 ) (13 ) Total deferred tax liabilities $ (19,891 ) $ (29,290 ) Deferred tax assets: Deferred compensation $ 131 $ 232 Advance payments 520 245 Bad debt 71 121 Other 230 412 Total net deferred tax assets $ 952 $ 1,010 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Years Ended December 31, 2017 2016 2015 Federal income tax at statutory rate 35 % 35 % 35 % Federal income tax provision at statutory rate $ 1,491 $ 3,081 $ 4,349 State income tax provision, net of federal income tax effects 177 397 475 Federal tax rate change (9,336 ) — — Other (188 ) 180 120 (Benefit) provision for income taxes $ (7,856 ) $ 3,658 $ 4,944 Effective income tax rate (184.5 )% 41.5 % 39.8 % |
Note 11 - Net Income Per Comm29
Note 11 - Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended December 31, 2017 2016 2015 Weighted average number of common shares outstanding - basic 3,346,689 3,283,177 3,239,306 Effect of dilutive securities 98,943 121,519 74,335 Weighted average number of common shares and potential 3,445,632 3,404,696 3,313,641 Net income $ 12,115 $ 5,146 $ 7,484 Net income per common share - basic $ 3.62 $ 1.57 $ 2.31 Net income per common share - diluted $ 3.52 $ 1.51 $ 2.26 |
Note 12 - Fair Value Measurem30
Note 12 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Senior Loan Agreement Carrying Value Fair Value Notes payable December 31, 2016 $ 82,000 $ 83,989 Notes payable December 31, 2017 $ — $ — Subordinated Loan Agreement Carrying Value Fair Value Notes payable December 31, 2016 $ 15,573 $ 15,605 Notes payable December 31, 2017 $ — $ — New Credit Facility Carrying Value Fair Value Notes payable December 31, 2016 $ — $ — Notes payable December 31, 2017 $ 85,912 $ 86,562 |
Note 13 - Commitments and Con31
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2018 $ 491 2019 465 2020 443 2021 442 2022 331 Thereafter 620 Total $ 2,792 |
Note 14 - Stock Plans and Sto32
Note 14 - Stock Plans and Stock Associated With Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Grant Date RSUs Fair Value Outstanding at December 31, 2016 203,640 $ 4.57 Granted — $ — Vested (88,287 ) $ 4.66 Forfeited or cancelled (16,410 ) $ 4.40 Outstanding at December 31, 2017 98,943 $ 4.51 |
Note 15 - Selected Quarterly 33
Note 15 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2016: Revenue $ 17,490 $ 17,232 $ 17,389 $ 16,833 Operating income $ 4,746 $ 4,899 $ 4,561 $ 4,607 Net income $ 1,750 $ 1,324 $ 1,125 $ 947 Net income per common share - basic $ 0.53 $ 0.40 $ 0.34 $ 0.30 Net income per common share - diluted $ 0.52 $ 0.39 $ 0.33 $ 0.27 Fiscal 2017: Revenue $ 17,380 $ 17,406 $ 16,946 $ 16,794 Operating income $ 5,021 $ 5,053 $ 4,989 $ 4,544 Net income $ 1,608 $ 1,536 $ 1,589 $ 7,382 Net income per common share - basic $ 0.48 $ 0.46 $ 0.67 $ 2.21 Net income per common share - diluted $ 0.47 $ 0.45 $ 0.65 $ 2.14 |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) - USD ($) | Nov. 02, 2017 | Feb. 17, 2016 | Jan. 25, 2016 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Issuance Costs, Net | $ 15,000 | ||||||
Write off of Deferred Debt Issuance Cost | 140,000 | ||||||
Long-term Debt | $ 85,912,000 | ||||||
Consortium of Banks Led By CoBank ABC [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Debt Issuance Costs, Net | $ 28,000 | ||||||
Write off of Deferred Debt Issuance Cost | 3,700,000 | ||||||
Debt Agreement, Maximum Borrowing Capacity | 92,000,000 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 5,000,000 | |||||
Revolving Credit Facility [Member] | Consortium of Banks Led By CoBank ABC [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ||||||
Term Loan Facility [Member] | Consortium of Banks Led By CoBank ABC [Member] | |||||||
Long-term Debt | 87,000,000 | ||||||
Line of Credit, Accordion Feature | $ 20,000,000 | ||||||
Senior Notes [Member] | |||||||
Debt Instrument, Term | 5 years | ||||||
Debt Instrument, Face Amount | $ 85,000,000 | ||||||
Proceeds from Issuance of Debt | 85,000,000 | ||||||
Debt Instrument, Periodic Payment | 1,000,000 | ||||||
Write off of Deferred Debt Issuance Cost | 3,070,000 | ||||||
Payments of Debt Restructuring Costs | $ 77,900 | ||||||
Capital Expenditure Limit | 8,500,000 | ||||||
Long-term Debt | 82,000,000 | ||||||
Senior Notes [Member] | Scenario, Forecast [Member] | |||||||
Capital Expenditure Limit | $ 7,500,000 | ||||||
Subordinated Debt [Member] | |||||||
Debt Instrument, Term | 5 years 182 days | ||||||
Debt Instrument, Face Amount | 15,300,000 | $ 15,000,000 | |||||
Proceeds from Issuance of Debt | $ 15,300,000 | ||||||
Write off of Deferred Debt Issuance Cost | 621,000 | ||||||
Long-term Debt | $ 15,300,000 |
Note 2 - Summary of Significa35
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Percentage of Net Property, Plant, and Equipment Accounted for Under ASC980 | 80.50% | 77.00% | |||
Authorized Rate of Return, Reduction in Period | 0.25% | ||||
Deferred Revenue | $ 2,400 | $ 628 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | ||||
Accounting Standards Update 2017-03 [Member] | |||||
Percentage of Revenue Within Scope of ASU 2014-09 | 74.30% | ||||
Sales Revenue, Services, Net [Member] | |||||
Concentration Risk, Percentage | 21.90% | 18.60% | 17.40% |
Note 3 - Goodwill and Intangi36
Note 3 - Goodwill and Intangible Assets (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of Reportable Segments | 1 | |
Number of Reporting Units | 3 | |
Goodwill Impairment, Weighted Percent Used in Discontinued Cash Flow Method | 75.00% | |
Goodwill Impairment, Weighted Percent Used in Guideline Public Company Method | 25.00% | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Goodwill | 44,976 | 44,976 |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | 0 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Alabama [Member | ||
Percent of Goodwill | 87.20% | |
Goodwill, Period Increase (Decrease) | $ 0 | 0 |
Goodwill | $ 39,199 | 39,199 |
Missouri [Member] | ||
Percent of Goodwill | 12.80% | |
Goodwill | $ 5,758 | 5,758 |
New England [Member] | ||
Percent of Goodwill | 1.00% | |
Goodwill | $ 19 | $ 19 |
Note 3 - Goodwill and Intangi37
Note 3 - Goodwill and Intangible Assets - Intangible Asset Summaries (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value | $ 43,755 | $ 43,755 |
Accumulated Amortization | (42,427) | (41,970) |
Net Book Value | 1,328 | 1,785 |
Customer Relationships [Member] | ||
Carrying Value | 24,025 | 24,025 |
Accumulated Amortization | (22,705) | (22,254) |
Net Book Value | 1,320 | 1,771 |
Customer Contracts [Member] | ||
Carrying Value | 19,600 | 19,600 |
Accumulated Amortization | (19,600) | (19,600) |
Net Book Value | ||
Noncompete Agreements [Member] | ||
Carrying Value | 107 | 107 |
Accumulated Amortization | (105) | (101) |
Net Book Value | 2 | 6 |
Trade Names [Member] | ||
Carrying Value | 23 | 23 |
Accumulated Amortization | (17) | (15) |
Net Book Value | $ 6 | $ 8 |
Note 3 - Goodwill and Intangi38
Note 3 - Goodwill and Intangible Assets - Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
2,015 | $ 458 | $ 578 | $ 815 |
2,018 | 408 | ||
2,019 | 389 | ||
2,020 | 372 | ||
2,021 | 159 | ||
2,022 | |||
Total | $ 1,328 | $ 1,785 |
Note 4 - Property and Equipme39
Note 4 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation | $ 7,001 | $ 7,137 | $ 7,678 |
Amortization | 376 | 885 | 1,200 |
Telephone Plant Adjustment [Member] | |||
Amortization | $ (82) | $ 307 | $ 385 |
Note 4 - Property and Equipme40
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant and Equipment, Gross | $ 296,968 | $ 291,058 |
Accumulated depreciation and amortization | (246,080) | (241,787) |
Net property and equipment | 50,888 | 49,271 |
Land [Member] | ||
Property Plant and Equipment, Gross | 1,164 | 1,164 |
Building Improvements [Member] | ||
Property Plant and Equipment, Gross | $ 12,999 | 12,812 |
Building Improvements [Member] | Minimum [Member] | ||
Estimated Life (Year) | 20 years | |
Building Improvements [Member] | Maximum [Member] | ||
Estimated Life (Year) | 40 years | |
Telephone Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 239,539 | 234,422 |
Telephone Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 6 years | |
Telephone Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 20 years | |
Cable Television Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 12,417 | 12,199 |
Estimated Life (Year) | 7 years | |
Furniture and Fixtures [Member] | ||
Property Plant and Equipment, Gross | $ 3,087 | 3,067 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated Life (Year) | 8 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Estimated Life (Year) | 14 years | |
Vehicles [Member] | ||
Property Plant and Equipment, Gross | $ 6,992 | 6,855 |
Vehicles [Member] | Minimum [Member] | ||
Estimated Life (Year) | 7 years | |
Vehicles [Member] | Maximum [Member] | ||
Estimated Life (Year) | 9 years | |
Computer Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 16,830 | 16,648 |
Computer Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 5 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 7 years | |
Internet Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 3,940 | $ 3,891 |
Estimated Life (Year) | 5 years |
Note 5 - Other Accounts Recei41
Note 5 - Other Accounts Receivable - Schedule of Other Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Receivables | $ 1,875 | $ 1,528 |
Carrier Access Bills Receivable [Member] | ||
Other Receivables | 282 | 380 |
NECA Receivable [Member] | ||
Other Receivables | 1,238 | 1,028 |
Receivables from Alabama Service Fund [Member] | ||
Other Receivables | 53 | 56 |
Other Miscellaneous [Member] | ||
Other Receivables | $ 302 | $ 64 |
Note 6 - Investments - Schedule
Note 6 - Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments | $ 1,632 | $ 1,821 |
CoBank Stock, at Cost [Member] | ||
Investments | 1,311 | 1,475 |
Rental Property [Member] | ||
Investments | 245 | 271 |
Other Miscellaneous Investments [Member] | ||
Investments | $ 76 | $ 75 |
Note 7 - Notes Payable (Details
Note 7 - Notes Payable (Details Textual) - USD ($) | Feb. 17, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 25, 2016 |
Amortization of Debt Issuance Costs | $ 4,823,000 | $ 1,397,000 | $ 880,000 | ||
Write off of Deferred Debt Issuance Cost | $ 140,000 | ||||
Debt Issuance Costs, Current, Net | 2,000,000 | ||||
Senior Notes [Member] | |||||
Debt Issuance Costs, Gross | 4,900,000 | ||||
Amortization of Debt Issuance Costs | 896,000 | 978,000 | |||
Write off of Deferred Debt Issuance Cost | 3,070,000 | ||||
Legal Fees | 14,000 | ||||
Debt Issuance Costs, Current, Net | |||||
Subordinated Debt [Member] | |||||
Debt Issuance Costs, Gross | 892,000 | ||||
Amortization of Debt Issuance Costs | 133,000 | 139,000 | |||
Write off of Deferred Debt Issuance Cost | 621,000 | ||||
Legal Fees | 14,000 | ||||
Previous Credit Facility [Member] | |||||
Debt Issuance Costs, Gross | 2,700,000 | ||||
Amortization of Debt Issuance Costs | 141,000 | 880,000 | |||
Write off of Deferred Debt Issuance Cost | 140,000 | ||||
Legal Fees | $ 15,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ||||
Long-term Line of Credit | 0 | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||
Line of Credit Facility, Commitment Fee Amount | $ 3,000 | $ 25,000 | |||
New Credit Facility [Member] | |||||
Debt Issuance Costs, Gross | 2,000,000 | ||||
Amortization of Debt Issuance Costs | 75,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | ||||
Long-term Line of Credit | $ 0 | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | ||||
Line of Credit Facility, Commitment Fee Amount | $ 4,000 | ||||
Debt Issuance Costs, Current, Net | $ 459 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | $ 5,000,000 | |||
Long-term Line of Credit | 0 | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | ||||
Line of Credit Facility, Commitment Fee Amount | $ 32,000 | $ 33,000 |
Note 7 - Notes Payable - Senior
Note 7 - Notes Payable - Senior Loan Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term debt | $ 85,912 | |
Debt issuance cost, current | (2,000) | |
Current maturity of long-term notes payable, net of debt issuance cost | 3,891 | $ 6,071 |
Long-term notes payable, less current maturities and debt issuance cost | 80,058 | 86,860 |
Long-term Debt | 85,912 | |
Senior Notes [Member] | ||
Long-term debt | 82,000 | |
Debt issuance cost, current | ||
Debt issuance cost, long-term | (3,889) | |
Current maturity of long-term notes payable, net of debt issuance cost | ||
Long-term notes payable, less current maturities and debt issuance cost | 78,111 | |
Long-term Debt | 82,000 | |
Subordinated Debt [Member] | ||
Long-term debt | 15,300 | |
Debt issuance cost, long-term | (753) | |
Long-term Debt | 15,300 | |
PIK interest added to principal | 273 | |
Long-term notes payable, net of debt issuance cost | $ 14,820 |
Note 7 - Notes Payable - Seni45
Note 7 - Notes Payable - Senior Loan Agreement (Details) (Parentheticals) | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Notes [Member] | ||
Interest Rate | 0.00% | 8.75% |
Subordinated Debt [Member] | ||
Interest Rate | 0.00% | 12.00% |
PIK Interest Rate | 0.00% | 2.00% |
Note 7 - Notes Payable - New Cr
Note 7 - Notes Payable - New Credit Facility (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 17, 2016 |
Debt issuance cost, current | $ (2,000,000) | ||
Debt issuance cost | $ (15,000) | ||
Current maturity of long-term notes payable, net of debt issuance cost | 3,891,000 | $ 6,071,000 | |
Notes payable, net of debt issuance cost | 80,058,000 | 86,860,000 | |
New Credit Facility [Member] | |||
Notes payable, current | 4,350 | ||
Notes payable, long-term | 81,562 | ||
Notes payable, face amount | 85,912 | ||
Debt issuance cost, current | (459) | ||
Debt issuance cost, long-term | (1,504) | ||
Debt issuance cost | (1,963) | ||
Current maturity of long-term notes payable, net of debt issuance cost | 3,891 | ||
Notes payable, net of debt issuance cost | 80,058 | ||
Notes payable, net of debt issuance cost | $ 83,949 |
Note 7 - Notes Payable - New 47
Note 7 - Notes Payable - New Credit Facility (Details) (Parentheticals) | Dec. 31, 2017 |
New Credit Facility [Member] | |
Interest Rate | 6.07% |
Note 7 - Notes Payable - Maturi
Note 7 - Notes Payable - Maturities of Notes Payable (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 4,350 |
2,019 | 4,350 |
2,020 | 4,350 |
2,021 | 4,350 |
2,022 | 68,512 |
Total | $ 85,912 |
Note 8 - Acquisition (Details T
Note 8 - Acquisition (Details Textual) $ in Millions | Jan. 02, 2014USD ($) |
Reliable Networks [Member] | |
Payments to Acquire Businesses, Gross | $ 0.5 |
Note 9 - Income Tax (Details Te
Note 9 - Income Tax (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 9,300,000 | ||
Deferred Tax Assets, Valuation Allowance | $ 0 | ||
Effective Income Tax Rate Reconciliation, Percent | (184.50%) | 41.50% | 39.80% |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 0 | ||
Alternative Minimum Tax [Member] | |||
Tax Credit Carryforward, Amount | $ 0 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards | 0 | 0 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards | $ 33,000 | $ 25,000 |
Note 9 - Income Tax - Tax Effec
Note 9 - Income Tax - Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal income taxes | |||
Current | $ 1,201 | $ 1,176 | $ 2,552 |
Deferred | (9,332) | 1,872 | 1,661 |
Total federal tax (benefit) expense | (8,131) | 3,048 | 4,213 |
State income taxes | |||
Current | 284 | 308 | 366 |
Deferred | (9) | 302 | 365 |
Total state tax expense | 275 | 610 | 731 |
Total income tax (benefit) expense | $ (7,856) | $ 3,658 | $ 4,944 |
Note 9 - Income Tax - Deferred
Note 9 - Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax liabilities: | ||
Amortization | $ (11,058) | $ (16,588) |
Depreciation | (8,408) | (11,966) |
Prepaid expense | (151) | (444) |
State net operating loss carryforwards and adjustments, liabilties | (266) | (279) |
Other | (8) | (13) |
Total deferred tax liabilities | (19,891) | (29,290) |
Deferred tax assets: | ||
Deferred compensation | 131 | 232 |
Advance payments | 520 | 245 |
Bad debt | 71 | 121 |
Other | 230 | 412 |
Total net deferred tax assets | $ 952 | $ 1,010 |
Note 9 - Income Tax - Effective
Note 9 - Income Tax - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Federal income tax provision at statutory rate | $ 1,491 | $ 3,081 | $ 4,349 |
State income tax provision, net of federal income tax effects | 177 | 397 | 475 |
Federal tax rate change | (9,336) | ||
Other | (188) | 180 | 120 |
Total income tax (benefit) expense | $ (7,856) | $ 3,658 | $ 4,944 |
Effective Income Tax Rate Reconciliation, Percent | (184.50%) | 41.50% | 39.80% |
Note 10 - Employee Benefit Pr54
Note 10 - Employee Benefit Program (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,500 | $ 18,000 | $ 18,000 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% |
Defined Contribution Plan, Cost | $ 486,000 | $ 508,000 | $ 520,000 |
BTC [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% |
Defined Contribution Plan, Cost | $ 16,000 | $ 16,000 | $ 15,000 |
Defined Contribution Plan, Minimum Annual Contributions Per Employee, Percent | 1.00% | ||
Multiemployer Plan, Contributions by Employer | $ 0 | $ 0 | $ 0 |
Note 11 - Net Income Per Comm55
Note 11 - Net Income Per Common Share - Reconciliation of Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average number of common shares outstanding - basic (in shares) | 3,346,689 | 3,283,177 | 3,239,306 | ||||||||
Effect of dilutive securities (in shares) | 98,943 | 121,519 | 74,335 | ||||||||
Weighted average number of common shares and potential common shares - diluted (in shares) | 3,445,632 | 3,404,696 | 3,313,641 | ||||||||
Net income | $ 7,382 | $ 1,589 | $ 1,536 | $ 1,608 | $ 947 | $ 1,125 | $ 1,324 | $ 1,750 | $ 12,115 | $ 5,146 | $ 7,484 |
Net income per common share - basic (in dollars per share) | $ 2.21 | $ 0.67 | $ 0.46 | $ 0.48 | $ 0.30 | $ 0.34 | $ 0.40 | $ 0.53 | $ 3.62 | $ 1.57 | $ 2.31 |
Net income per common share - diluted (in dollars per share) | $ 2.14 | $ 0.65 | $ 0.45 | $ 0.47 | $ 0.27 | $ 0.33 | $ 0.39 | $ 0.52 | $ 3.52 | $ 1.51 | $ 2.26 |
Note 12 - Fair Value Measurem56
Note 12 - Fair Value Measurement - Fair Value of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Debt | $ 85,912 | |
Senior Notes [Member] | ||
Long-term Debt | $ 82,000 | |
Subordinated Debt [Member] | ||
Long-term Debt | 15,300 | |
Reported Value Measurement [Member] | New Credit Facility [Member] | ||
Long-term Debt | 85,912 | |
Reported Value Measurement [Member] | Senior Notes [Member] | ||
Long-term Debt | 82,000 | |
Reported Value Measurement [Member] | Subordinated Debt [Member] | ||
Long-term Debt | 15,573 | |
Estimate of Fair Value Measurement [Member] | New Credit Facility [Member] | ||
Long-term Debt | 86,562 | |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | ||
Long-term Debt | 83,989 | |
Estimate of Fair Value Measurement [Member] | Subordinated Debt [Member] | ||
Long-term Debt | $ 15,605 |
Note 13 - Commitments and Con57
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense, Net | $ 539 | $ 562 | $ 582 |
Note 13 - Commitments and Con58
Note 13 - Commitments and Contingencies - Minimum Future Rental Payments Under Non-Cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 491 |
2,019 | 465 |
2,020 | 443 |
2,021 | 442 |
2,022 | 331 |
Thereafter | 620 |
Total | $ 2,792 |
Note 14 - Stock Plans and Sto59
Note 14 - Stock Plans and Stock Associated With Acquisition (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Allocated Share-based Compensation Expense | $ 308 | $ 415 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 108 | $ 173 | |
Reliable Networks [Member] | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 0 | 68,233 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 366,356 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested or Cancelled | 162,716 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 343 | $ 503 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 14 - Stock Plans and Sto60
Note 14 - Stock Plans and Stock Associated with Acquisition - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding at December 31, 2016 (in shares) | 203,640 | |
Outstanding at December 31, 2016 (in dollars per share) | $ 4.57 | |
Granted (in shares) | 0 | 366,356 |
Vested (in shares) | (88,287) | |
Vested (in dollars per share) | $ 4.66 | |
Forfeited or cancelled (in shares) | (16,410) | |
Forfeited or cancelled (in dollars per share) | $ 4.40 | |
Outstanding at December 31, 2017 (in shares) | 98,943 | 203,640 |
Outstanding at December 31, 2017 (in dollars per share) | $ 4.51 | $ 4.57 |
Note 15 - Selected Quarterly 61
Note 15 - Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 16,794 | $ 16,946 | $ 17,406 | $ 17,380 | $ 16,833 | $ 17,389 | $ 17,232 | $ 17,490 | $ 68,526 | $ 68,944 | $ 71,102 |
Operating income | 4,544 | 4,989 | 5,053 | 5,021 | 4,607 | 4,561 | 4,899 | 4,746 | 19,607 | 18,813 | 19,255 |
Net income | $ 7,382 | $ 1,589 | $ 1,536 | $ 1,608 | $ 947 | $ 1,125 | $ 1,324 | $ 1,750 | $ 12,115 | $ 5,146 | $ 7,484 |
Net income per common share - basic (in dollars per share) | $ 2.21 | $ 0.67 | $ 0.46 | $ 0.48 | $ 0.30 | $ 0.34 | $ 0.40 | $ 0.53 | $ 3.62 | $ 1.57 | $ 2.31 |
Net income per common share - diluted (in dollars per share) | $ 2.14 | $ 0.65 | $ 0.45 | $ 0.47 | $ 0.27 | $ 0.33 | $ 0.39 | $ 0.52 | $ 3.52 | $ 1.51 | $ 2.26 |