Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
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 | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 3,388,624 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 3,720 | $ 3,570 |
Accounts receivable: | ||
Due from subscribers, net of allowance for doubtful accounts of $351 and $206, respectively | 4,939 | 4,647 |
Other | 2,003 | 1,875 |
Materials and supplies | 2,773 | 2,700 |
Prepaid expenses | 1,143 | 3,122 |
Total current assets | 14,578 | 15,914 |
Property and equipment, net | 51,544 | 50,888 |
Goodwill | 44,976 | 44,976 |
Intangible assets, net | 1,019 | 1,328 |
Investments | 1,493 | 1,632 |
Interest rate cap | 40 | |
Other assets | 151 | 201 |
Total assets | 113,801 | 114,939 |
Current liabilities | ||
Accounts payable | 1,083 | 1,619 |
Accrued expenses | 6,298 | 4,803 |
Advance billings and payments | 1,568 | 1,684 |
Customer deposits | 64 | 58 |
Current maturity of long-term notes payable, net of debt issuance cost | 3,903 | 3,891 |
Total current liabilities | 12,916 | 12,055 |
Deferred income taxes | 18,939 | 18,939 |
Advance billings and payments | 2,260 | 2,367 |
Other liabilities | 21 | 13 |
Notes payable, net of debt issuance cost, long-term | 71,101 | 80,058 |
Total liabilities | 105,237 | 113,432 |
Stockholders' equity | ||
Additional paid in capital | 4,112 | 4,285 |
Retained earnings (accumulated deficit) | 4,418 | (2,812) |
Total stockholders' equity | 8,564 | 1,507 |
Total liabilities and stockholders' equity | 113,801 | 114,939 |
Common Class A [Member] | ||
Stockholders' equity | ||
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 3,388,624 and 3,346,689 shares, respectively | $ 34 | $ 34 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 351 | $ 206 |
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) | 3,388,624 | 3,346,689 |
Common stock, outstanding (in shares) | 3,388,624 | 3,346,689 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Revenues | $ 16,252 | [1] | $ 16,946 | $ 49,867 | [1] | $ 51,732 |
Operating expenses | ||||||
Cost of services | 7,578 | 7,610 | 23,026 | 23,468 | ||
Selling, general and administrative expenses | 2,382 | 2,588 | 7,691 | 7,762 | ||
Depreciation and amortization | 1,756 | 1,834 | 5,382 | 5,515 | ||
Total operating expenses | 11,716 | 12,032 | 36,099 | 36,745 | ||
Income from operations | 4,536 | 4,914 | 13,768 | 14,987 | ||
Other income (expense) | ||||||
Interest expense | (1,459) | (2,567) | (4,384) | (7,749) | ||
Other income | 83 | 252 | 204 | |||
Total other expense | (1,376) | (2,567) | (4,132) | (7,545) | ||
Income before income tax expense | 3,160 | 2,347 | 9,636 | 7,442 | ||
Income tax expense | (834) | (758) | (2,406) | (2,709) | ||
Net income | $ 2,326 | $ 1,589 | $ 7,230 | $ 4,733 | ||
Weighted average number of common shares outstanding: | ||||||
Basic (in shares) | 3,388,624 | 3,346,689 | 3,388,624 | 3,346,689 | ||
Diluted (in shares) | 3,454,936 | 3,445,632 | 3,438,386 | 3,445,632 | ||
Basic net income per common share (in dollars per share) | $ 0.69 | $ 0.47 | $ 2.13 | $ 1.41 | ||
Diluted net income per common share (in dollars per share) | $ 0.67 | $ 0.46 | $ 2.10 | $ 1.37 | ||
[1] | Revenue generated from sources not within the scope of ASU 2014-09. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 7,230 | $ 4,733 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation | 5,135 | 5,225 |
Amortization | 247 | 290 |
Amortization of loan costs | 354 | 927 |
Provision for uncollectible accounts receivable | 283 | 290 |
Stock-based compensation | 207 | 237 |
Payment in kind interest - subordinated debt | 237 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (704) | (73) |
Materials and supplies | (73) | (663) |
Prepaid expenses and other assets | 2,030 | 1,280 |
Accounts payable and accrued expenses | 959 | 453 |
Advance billings and payments | (223) | 582 |
Other liabilities | 15 | (3) |
Net cash from operating activities | 15,460 | 13,515 |
Cash flows used in investing activities: | ||
Acquisition and construction of property and equipment | (5,710) | (5,951) |
Net cash used in investing activities | (5,710) | (5,951) |
Cash flows used in financing activities: | ||
Loan origination costs | (37) | (77) |
Principal repayment of long-term notes payable | (9,262) | (9,125) |
Interest rate cap | (40) | |
Retirement of CoBank equity | 119 | 164 |
Tax withholdings paid on behalf of employees for restricted stock units | (380) | (209) |
Net cash used in financing activities | (9,600) | (9,247) |
Net increase (decrease) in cash and cash equivalents | 150 | (1,683) |
Cash and cash equivalents, beginning of period | 3,570 | 10,538 |
Cash and cash equivalents, end of period | 3,720 | 8,855 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 4,029 | 6,654 |
Income taxes paid | 2 | 1,802 |
Issuance of Class A common stock | $ 1 |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Financial Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Basis of Financial Reporting Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of Otelco Inc. (the “Company”) and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC; Brindlee Mountain Telephone LLC; CRC Communications LLC; 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 condensed consolidated financial statements include the accounts of the Company and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. The unaudited operating results for the three nine September 30, 2018, not may December 31, 2018, The condensed consolidated financial statements and notes included in this Quarterly Report on Form 10 10 December 31, 2017. December 31, 2017, Recently Adopted Accounting Pronouncements 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 2014 09. The Company adopted ASU 2014 09 2018 not January 1, 2018. not 2014 09 not In January 2016, 2016 01, Financial Instruments - Overall (Subtopic 825 10 2016 01” 2016 01 December 15, 2017, February 2018, 2018 03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825 10 six 2016 01, second 2018 first 2018, 2016 01 March 31, 2018, not In August 2016, 2016 15 , Statement of Cash Flows (Topic 230 230, December 15, 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 not In May 2017, 2017 10, Service Concession Arrangements (Topic 853 2017 10” not 840, Leases 2017 10 not December 15, 2017, not In March 2018, 2018 05, Income Taxes (Topic 740 740, No. 118, 118” 118 may not may one December 31, 2017, $9.3 one Recent Accounting Pronouncements During 2017, 2017 01 2017 15 2018, 2018 01 2018 15. In February 2016, 2016 02, Leases (Topic 842 2016 02” . December 15, 2018, January 2017, 2017 03, 2016 02 2016 02 January 2018, 2018 01, Leases (Topic 842 842 not 2016 02 not 840, Leases 2016 02 2016 02. July 2018, 2018 10, Codification Improvements to Topic 842, 2016 02. July 2018, 2018 11, Leases (Topic 842 Targeted Improvements not 2016 02. 2016 02 January 1, 2019. In January 2017, 2017 04, Intangibles-Goodwill and Other (Topic 350 2017 04” 2 2017 04 December 15, 2019, January 1, 2017. not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 . 2017 09, December 15, 2018, no 2014 09. not In August 2018, 2018 13, Fair Value Measurement (Topic 820 2018 13” . 2018 13, 2018 13 December 15, 2019, not 2017 Refinancing On November 2, 2017, $92 five $87.0 $5.0 $20.0 $28 $3.7 |
Note 2 - Notes Payable
Note 2 - Notes Payable | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. Notes Payable Notes payable consists of the following (in thousands, except percentages) as of: September 30 , December 31, Current Long-term 2018 2017 New Credit Facility with CoBank, ACB; variable interest rate of 6.74% at September 30, 2018, 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 $ 72,300 $ 76,650 $ 85,912 Debt issuance cost (447 ) (1,199 ) (1,646 ) (1,963 ) Notes payable, net of debt issuance cost $ 3,903 $ 71,101 $ 75,004 $ 83,949 The Senior Loan Agreement was fully repaid on November 2, 2017. $4.9 $808 nine September 30, 2017, The Subordinated Loan Agreement was fully repaid on November 2, 2017. $892 $120 nine September 30, 2017, Associated with the New Credit Facility, the Company has $2.1 $354 nine September 30, 2018, The Company had a revolving credit facility of $5.0 no September 30, 2017. November 2, 2017. 0.75% $28 nine September 30, 2017. The revolving credit facility associated with the Company’s New Credit Facility had a maximum borrowing capacity of $5.0 September 30, 2018. November 3, 2022. no September 30, 2018. 0.50% $19 nine September 30, 2018. Maturities of notes payable for the next five no 2018 (remaining) $ 1,088 2019 4,350 2020 4,350 2021 4,350 2022 62,512 Total $ 76,650 A total of $2.1 The Company made voluntary principal prepayments of $1.0 $2.0 July 31, 2018, August 31, 2018, 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 September 30, 2018, |
Note 3 - Income Tax
Note 3 - Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. Income Tax As of September 30, 2018, December 31, 2017, no September 30, 2018, December 31, 2017, $43 $33 no September 30, 2018, December 31, 2017. September 30, 2018, no The effective income tax rate as of September 30, 2018, December 31, 2017, 25.0% 184.5 |
Note 4 - Net Income Per Common
Note 4 - Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4. Net Income per Common Share Basic net income 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”) be issued. A reconciliation 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): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average number of common shares outstanding - basic 3,388,624 3,346,689 3,388,624 3,346,689 Effect of dilutive securities 66,312 98,943 49,762 98,943 Weighted average number of common shares and potential common shares - diluted 3,454,936 3,445,632 3,438,386 3,445,632 Net income $ 2,326 $ 1,589 $ 7,230 $ 4,733 Net income per common share - basic $ 0.69 $ 0.47 $ 2.13 $ 1.41 Net income per common share - diluted $ 0.67 $ 0.46 $ 2.10 $ 1.37 |
Note 5 - Revenue Streams and Co
Note 5 - Revenue Streams and Concentrations | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 5. Revenue Streams and Concentration s Revenue Streams The Company identifies its revenue streams with similar characteristics as follows (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Local services $ 5,302 $ 16,218 Network access 5,120 15,918 Internet 3,775 11,485 Transport services 1,211 3,613 Video and security 689 2,144 Managed services 155 489 Total revenues $ 16,252 $ 49,867 ASU 2014 09 1, Organization and Basis of Financial Reporting – Recently Adopted Accounting Pronouncements five 2014 09. The following table identifies revenue generated from customers (in thousands): Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Local services $ 5,302 $ 16,218 Network access 1,131 3,553 Internet 3,775 11,485 Transport services 1,173 3,500 Video and security 689 2,144 Managed services 155 490 Total revenues $ 12,225 $ 37,390 The following table summarizes the revenue generated from contracts with customers among each revenue stream as of September 30, 2018 ( Three Months Ended September 30 , 2018 % In-Scope % Total Month to month (“MTM”) customers $ 7,492 62.1 % 46.1 % Competitive local exchange carrier (“CLEC”) business customers 3,447 28.6 21.2 Network access 666 5.5 4.1 Total revenue streams 11,605 96.2 71.4 Global access* 464 3.8 2.9 Total revenue from contracts with customers 12,069 100.0 % 74.3 Indefeasible rights-of-use agreements** 38 n/a 0.2 Managed services** 155 n/a 1.0 Network access** 3,990 n/a 24.5 Total revenues $ 16,252 100.0 % *Fixed fees charged to MTM customers and CLEC business customers. ** Revenue generated from sources not 2014 09. Nine Months Ended September 30, 2018 % In-Scope % Total MTM customers $ 22,759 61.7 % 45.6 % CLEC business customers 10,588 28.7 21.2 Network access 2,076 5.6 4.2 Total revenue streams 35,423 96.0 71.0 Global access* 1,477 4.0 3.0 Total revenue from contracts with customers 36,900 100.0 % 74.0 Indefeasible rights-of-use agreements** 113 n/a 0.2 Managed services** 490 n/a 1.0 Network access** 12,364 n/a 24.8 Total revenues $ 49,867 100.0 % *Fixed fees charged to MTM customers and CLEC business customers. ** Revenue generated from sources not 2014 09. Payment terms vary by customer. The Company typically invoices customers in the month following when the service was provided. The term between invoicing and when payment is due is less than a year and is not Revenue is recognized net of taxes collected on behalf of third As of September 30, 2018, $8.0 September 30, 2018, $0.9 $7.1 2 5 not one The deferred revenue balance as of January 1, 2018, $4.1 $1.5 three March 31, 2018, March 31, 2018, The deferred revenue balance as of June 30, 2018, $3.9 $1.4 three September 30, 2018, September 30, 2018, Revenue Concentrations Revenues for interstate access services are based on reimbursement of costs and allowed rate of return. Revenues of this nature are received from the National Exchange Carrier Association in the form of monthly settlements. Such revenues amounted to 22.6% 21.8% nine September 30, 2018, 2017, |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies From time to time, the Company may may none Sprint Communications L.P. (“Sprint”), MCI Communications Services, Inc. (“MCI”) and Verizon Select Services, Inc. (“Verizon”) filed more than 60 400 two one May 2, 2014, September 5, 2014, one September 5, 2014. 3 3” 3 May 5, 2018, 3. On November 10, 2014, 1 2 may 3 4 may not March 11, 2015, No |
Note 7 - Stock Plans
Note 7 - Stock Plans | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 7. Stock Plans During the nine September 30, 2018, 34,755 366,356 one three 366,356 nine September 30, 2018, 267,413 December 31, 2017. no The following table summarizes RSU activity as of September 30, 2018: RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 98,943 $ 4.51 Granted 34,755 $ 13.30 Vested (67,386 ) $ 4.56 Forfeited or cancelled — $ — Outstanding at September 30, 2018 66,312 $ 9.06 Stock-based compensation expense related to RSUs was $207 $237 nine September 30, 2018, 2017, no 2014 As of September 30, 2018, $684 2022. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements include the accounts of Otelco Inc. (the “Company”) and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC; Brindlee Mountain Telephone LLC; CRC Communications LLC; 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 condensed consolidated financial statements include the accounts of the Company and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. The unaudited operating results for the three nine September 30, 2018, not may December 31, 2018, The condensed consolidated financial statements and notes included in this Quarterly Report on Form 10 10 December 31, 2017. December 31, 2017, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements 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 2014 09. The Company adopted ASU 2014 09 2018 not January 1, 2018. not 2014 09 not In January 2016, 2016 01, Financial Instruments - Overall (Subtopic 825 10 2016 01” 2016 01 December 15, 2017, February 2018, 2018 03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825 10 six 2016 01, second 2018 first 2018, 2016 01 March 31, 2018, not In August 2016, 2016 15 , Statement of Cash Flows (Topic 230 230, December 15, 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 not In May 2017, 2017 10, Service Concession Arrangements (Topic 853 2017 10” not 840, Leases 2017 10 not December 15, 2017, not In March 2018, 2018 05, Income Taxes (Topic 740 740, No. 118, 118” 118 may not may one December 31, 2017, $9.3 one Recent Accounting Pronouncements During 2017, 2017 01 2017 15 2018, 2018 01 2018 15. In February 2016, 2016 02, Leases (Topic 842 2016 02” . December 15, 2018, January 2017, 2017 03, 2016 02 2016 02 January 2018, 2018 01, Leases (Topic 842 842 not 2016 02 not 840, Leases 2016 02 2016 02. July 2018, 2018 10, Codification Improvements to Topic 842, 2016 02. July 2018, 2018 11, Leases (Topic 842 Targeted Improvements not 2016 02. 2016 02 January 1, 2019. In January 2017, 2017 04, Intangibles-Goodwill and Other (Topic 350 2017 04” 2 2017 04 December 15, 2019, January 1, 2017. not In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 . 2017 09, December 15, 2018, no 2014 09. not In August 2018, 2018 13, Fair Value Measurement (Topic 820 2018 13” . 2018 13, 2018 13 December 15, 2019, not |
Refinancing Policy [Policy Text Block] | 2017 Refinancing On November 2, 2017, $92 five $87.0 $5.0 $20.0 $28 $3.7 |
Note 2 - Notes Payable (Tables)
Note 2 - Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2018 (remaining) $ 1,088 2019 4,350 2020 4,350 2021 4,350 2022 62,512 Total $ 76,650 |
New Credit Facility [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30 , December 31, Current Long-term 2018 2017 New Credit Facility with CoBank, ACB; variable interest rate of 6.74% at September 30, 2018, 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 $ 72,300 $ 76,650 $ 85,912 Debt issuance cost (447 ) (1,199 ) (1,646 ) (1,963 ) Notes payable, net of debt issuance cost $ 3,903 $ 71,101 $ 75,004 $ 83,949 |
Note 4 - Net Income Per Commo_2
Note 4 - Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Weighted average number of common shares outstanding - basic 3,388,624 3,346,689 3,388,624 3,346,689 Effect of dilutive securities 66,312 98,943 49,762 98,943 Weighted average number of common shares and potential common shares - diluted 3,454,936 3,445,632 3,438,386 3,445,632 Net income $ 2,326 $ 1,589 $ 7,230 $ 4,733 Net income per common share - basic $ 0.69 $ 0.47 $ 2.13 $ 1.41 Net income per common share - diluted $ 0.67 $ 0.46 $ 2.10 $ 1.37 |
Note 5 - Revenue Streams and _2
Note 5 - Revenue Streams and Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Local services $ 5,302 $ 16,218 Network access 5,120 15,918 Internet 3,775 11,485 Transport services 1,211 3,613 Video and security 689 2,144 Managed services 155 489 Total revenues $ 16,252 $ 49,867 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Local services $ 5,302 $ 16,218 Network access 1,131 3,553 Internet 3,775 11,485 Transport services 1,173 3,500 Video and security 689 2,144 Managed services 155 490 Total revenues $ 12,225 $ 37,390 Three Months Ended September 30 , 2018 % In-Scope % Total Month to month (“MTM”) customers $ 7,492 62.1 % 46.1 % Competitive local exchange carrier (“CLEC”) business customers 3,447 28.6 21.2 Network access 666 5.5 4.1 Total revenue streams 11,605 96.2 71.4 Global access* 464 3.8 2.9 Total revenue from contracts with customers 12,069 100.0 % 74.3 Indefeasible rights-of-use agreements** 38 n/a 0.2 Managed services** 155 n/a 1.0 Network access** 3,990 n/a 24.5 Total revenues $ 16,252 100.0 % Nine Months Ended September 30, 2018 % In-Scope % Total MTM customers $ 22,759 61.7 % 45.6 % CLEC business customers 10,588 28.7 21.2 Network access 2,076 5.6 4.2 Total revenue streams 35,423 96.0 71.0 Global access* 1,477 4.0 3.0 Total revenue from contracts with customers 36,900 100.0 % 74.0 Indefeasible rights-of-use agreements** 113 n/a 0.2 Managed services** 490 n/a 1.0 Network access** 12,364 n/a 24.8 Total revenues $ 49,867 100.0 % |
Note 7 - Stock Plans (Tables)
Note 7 - Stock Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 98,943 $ 4.51 Granted 34,755 $ 13.30 Vested (67,386 ) $ 4.56 Forfeited or cancelled — $ — Outstanding at September 30, 2018 66,312 $ 9.06 |
Note 1 - Organization and Bas_2
Note 1 - Organization and Basis of Financial Reporting (Details Textual) - USD ($) $ in Thousands | Nov. 02, 2017 | Dec. 31, 2017 | Sep. 30, 2018 |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 9,300 | ||
Long-term Debt, Total | $ 76,650 | ||
Consortium of Banks Led By CoBank ABC [Member] | |||
Debt Agreement, Maximum Borrowing Capacity | $ 92,000 | ||
Debt Instrument, Term | 5 years | ||
Debt Issuance Costs, Net, Total | $ 28 | ||
Write off of Deferred Debt Issuance Cost | 3,700 | ||
Consortium of Banks Led By CoBank ABC [Member] | Term Loan Facility [Member] | |||
Long-term Debt, Total | 87,000 | ||
Line of Credit, Accordion Feature | 20,000 | ||
Consortium of Banks Led By CoBank ABC [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 |
Note 2 - Notes Payable (Details
Note 2 - Notes Payable (Details Textual) - USD ($) $ in Thousands | Aug. 31, 2018 | Jul. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Amortization of Debt Issuance Costs | $ 354 | $ 927 | ||
Debt Issuance Costs, Current, Net, Total | 2,100 | |||
Repayments of Senior Debt, Total | $ 2,000 | $ 1,000 | 9,262 | 9,125 |
New Credit Facility [Member] | ||||
Debt Issuance Costs, Gross | 2,100 | |||
Amortization of Debt Issuance Costs | 354 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |||
Long-term Line of Credit, Total | $ 0 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||
Line of Credit Facility, Commitment Fee Amount | $ 19 | |||
Debt Issuance Costs, Current, Net, Total | 447 | |||
Previous Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | |||
Long-term Line of Credit, Total | $ 0 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | |||
Line of Credit Facility, Commitment Fee Amount | $ 28 | |||
Senior Notes [Member] | ||||
Debt Issuance Costs, Gross | 4,900 | |||
Amortization of Debt Issuance Costs | 808 | |||
Subordinated Debt [Member] | ||||
Debt Issuance Costs, Gross | 892 | |||
Amortization of Debt Issuance Costs | $ 120 |
Note 2 - Notes Payable - New Cr
Note 2 - Notes Payable - New Credit Facility (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt issuance cost, current | $ (2,100) | |
Notes payable, net of debt issuance cost, current | 3,903 | $ 3,891 |
Notes payable, net of debt issuance cost, long-term | 71,101 | 80,058 |
New Credit Facility [Member] | ||
Notes payable, current | 4,350 | |
Notes payable, long-term | 72,300 | |
Notes payable, face amount | 76,650 | 85,912 |
Debt issuance cost, current | (447) | |
Debt issuance cost, long-term | (1,199) | |
Debt issuance cost | (1,646) | (1,963) |
Notes payable, net of debt issuance cost, current | 3,903 | |
Notes payable, net of debt issuance cost, long-term | 71,101 | |
Notes payable, net of debt issuance cost | $ 75,004 | $ 83,949 |
Note 2 - Notes Payable - New _2
Note 2 - Notes Payable - New Credit Facility (Details) (Parentheticals) | Sep. 30, 2018 | Dec. 31, 2017 |
New Credit Facility [Member] | ||
Notes payable, interest rate | 6.74% | 6.74% |
Note 2 - Notes Payable - Maturi
Note 2 - Notes Payable - Maturities of Notes Payable (Details) $ in Thousands | Sep. 30, 2018USD ($) |
2018 (remaining) | $ 1,088 |
2,019 | 4,350 |
2,020 | 4,350 |
2,021 | 4,350 |
2,022 | 62,512 |
Total | $ 76,650 |
Note 3 - Income Tax (Details Te
Note 3 - Income Tax (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 25.00% | (184.50%) |
Alternative Minimum Tax [Member] | ||
Tax Credit Carryforward, Amount | $ 0 | |
Alternative Minimum Tax Credit [Member] | ||
Tax Credit Carryforward, Amount | $ 0 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | 0 | 0 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards, Total | $ 43 | $ 33 |
Note 4 - Net Income Per Commo_3
Note 4 - Net Income Per Common Share - Reconciliation of Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted average number of common shares outstanding - basic (in shares) | 3,388,624 | 3,346,689 | 3,388,624 | 3,346,689 |
Effect of dilutive securities (in shares) | 66,312 | 98,943 | 49,762 | 98,943 |
Weighted average number of common shares and potential common shares - diluted (in shares) | 3,454,936 | 3,445,632 | 3,438,386 | 3,445,632 |
Net income | $ 2,326 | $ 1,589 | $ 7,230 | $ 4,733 |
Net income per common share - basic (in dollars per share) | $ 0.69 | $ 0.47 | $ 2.13 | $ 1.41 |
Net income per common share - diluted (in dollars per share) | $ 0.67 | $ 0.46 | $ 2.10 | $ 1.37 |
Note 5 - Revenue Streams and _3
Note 5 - Revenue Streams and Concentrations (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jan. 01, 2018 | |
Revenue, Remaining Performance Obligation, Amount | $ 8 | $ 8 | ||||
Contract with Customer, Liability, Total | $ 3.9 | $ 4.1 | ||||
Contract with Customer, Liability, Revenue Recognized | 1.4 | $ 1.5 | ||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | National Exchange Carrier Association [Member] | ||||||
Concentration Risk, Percentage | 22.60% | 21.80% | ||||
Short-term Contract with Customer [Member] | ||||||
Revenue, Remaining Performance Obligation, Amount | 0.9 | $ 0.9 | ||||
Long-term Contract with Customer [Member] | ||||||
Revenue, Remaining Performance Obligation, Amount | $ 7.1 | $ 7.1 | ||||
Long-term Contract with Customer [Member] | Minimum [Member] | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years | 2 years | ||||
Long-term Contract with Customer [Member] | Maximum [Member] | ||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years | 5 years |
Note 5 - Revenue Streams and _4
Note 5 - Revenue Streams and Concentrations - Revenue Streams (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Revenues | $ 16,252 | [1] | $ 16,946 | $ 49,867 | [1] | $ 51,732 | |
Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | [1] | 100.00% | 100.00% | ||||
Month-to-Month Customers [Member] | |||||||
Revenues, within scope of ASU 2014-09 | $ 7,492 | $ 22,759 | |||||
Revenues, percentage within scope of ASU 2014-09 | 62.10% | 61.70% | |||||
Month-to-Month Customers [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | 46.10% | ||||||
Month-to-Month Customers [Member] | Sales Revenue, Net [Member] | |||||||
Revenues, percentage | 45.60% | ||||||
Competitive Local Exchange Carrier Business Customers [Member] | |||||||
Revenues, within scope of ASU 2014-09 | $ 3,447 | $ 10,588 | |||||
Revenues, percentage within scope of ASU 2014-09 | 28.60% | 28.70% | |||||
Competitive Local Exchange Carrier Business Customers [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | 21.20% | ||||||
Competitive Local Exchange Carrier Business Customers [Member] | Sales Revenue, Net [Member] | |||||||
Revenues, percentage | 21.20% | ||||||
Network Access Customers [member] | |||||||
Revenues, within scope of ASU 2014-09 | $ 666 | $ 2,076 | |||||
Revenues, percentage within scope of ASU 2014-09 | 5.50% | 5.60% | |||||
Network Access Customers [member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | 4.10% | 4.20% | |||||
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | |||||||
Revenues, within scope of ASU 2014-09 | $ 11,605 | $ 35,423 | |||||
Revenues, percentage within scope of ASU 2014-09 | 96.20% | 96.00% | |||||
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | 71.40% | 71.00% | |||||
Global Access Customers [Member] | |||||||
Revenues, within scope of ASU 2014-09 | [2] | $ 464 | $ 1,477 | ||||
Revenues, percentage within scope of ASU 2014-09 | [2] | 3.80% | 4.00% | ||||
Global Access Customers [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | [2] | 2.90% | 3.00% | ||||
Month-to-Month, Competitive Local Exchange Carrier Business, Network Access, and Global Access Customers [Member] | |||||||
Revenues, within scope of ASU 2014-09 | $ 12,069 | $ 36,900 | |||||
Revenues, percentage within scope of ASU 2014-09 | 100.00% | 100.00% | |||||
Month-to-Month, Competitive Local Exchange Carrier Business, Network Access, and Global Access Customers [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | 74.30% | 74.00% | |||||
Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | $ 12,225 | $ 37,390 | |||||
Local services [Member] | |||||||
Revenues | 5,302 | 16,218 | |||||
Local services [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | 5,302 | 16,218 | |||||
Network Access [Member] | |||||||
Revenues | 5,120 | 15,918 | |||||
Network Access [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | 1,131 | 3,553 | |||||
Internet [Member] | |||||||
Revenues | 3,775 | 11,485 | |||||
Internet [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | 3,775 | 11,485 | |||||
Transport Services [Member] | |||||||
Revenues | 1,211 | 3,613 | |||||
Transport Services [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | 1,173 | 3,500 | |||||
Video and Security [Member] | |||||||
Revenues | 689 | 2,144 | |||||
Video and Security [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | 689 | 2,144 | |||||
Management Service [Member] | |||||||
Revenues | $ 155 | [1] | $ 489 | ||||
Management Service [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | [1] | 1.00% | 1.00% | ||||
Management Service [Member] | Sales Channel, Directly to Consumer [Member] | |||||||
Revenues | $ 155 | $ 490 | |||||
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | |||||||
Revenues | [1] | $ 38 | $ 113 | ||||
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | [1] | 0.20% | 0.20% | ||||
Network Access, Outside of ASU 2014-09 Scope [Member] | |||||||
Revenues | [1] | $ 3,990 | $ 12,364 | ||||
Network Access, Outside of ASU 2014-09 Scope [Member] | Sales Revenue, Services, Net [Member] | |||||||
Revenues, percentage | [1] | 24.50% | 24.80% | ||||
[1] | Revenue generated from sources not within the scope of ASU 2014-09. | ||||||
[2] | Fixed fees charged to MTM customers and CLEC business customers. |
Note 7 - Stock Plans (Details T
Note 7 - Stock Plans (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 684 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 34,755 | 366,356 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested or Cancelled | 267,413 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | ||
Allocated Share-based Compensation Expense, Total | $ 207 | $ 237 | |
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 7 - Stock Plans - Summary
Note 7 - Stock Plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Outstanding at December 31, 2017 (in shares) | 98,943 | |
Outstanding at December 31, 2017 (in dollars per share) | $ 4.51 | |
Granted (in shares) | 34,755 | 366,356 |
Granted (in dollars per share) | $ 13.30 | |
Vested (in shares) | (67,386) | |
Vested (in dollars per share) | $ 4.56 | |
Forfeited or cancelled (in shares) | ||
Forfeited or cancelled (in dollars per share) | ||
Outstanding at September 30, 2018 (in shares) | 66,312 | 98,943 |
Outstanding at September 30, 2018 (in dollars per share) | $ 9.06 | $ 4.51 |