Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 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 Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Public Float | $ 35.8 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | 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) | 3,388,624 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 4,657 | $ 3,570 |
Accounts receivable: | ||
Due from subscribers, net of allowance for doubtful accounts of $577 and $226, respectively | 4,183 | 4,647 |
Other | 1,899 | 1,875 |
Materials and supplies | 2,802 | 2,700 |
Prepaid expenses | 1,198 | 3,122 |
Total current assets | 14,739 | 15,914 |
Property and equipment, net | 52,073 | 50,888 |
Goodwill | 44,976 | 44,976 |
Intangible assets, net | 919 | 1,328 |
Investments | 1,498 | 1,632 |
Interest rate cap | 4 | |
Other assets | 143 | 201 |
Total assets | 114,352 | 114,939 |
Current liabilities | ||
Accounts payable | 1,331 | 1,619 |
Accrued expenses | 5,054 | 4,803 |
Advance billings and payments | 1,614 | 1,684 |
Customer deposits | 48 | 58 |
Notes payable, net of debt issuance cost, current | 3,904 | 3,891 |
Total current liabilities | 11,951 | 12,055 |
Deferred income taxes | 20,145 | 18,939 |
Advance billings and payments | 2,234 | 2,367 |
Other liabilities | 13 | 13 |
Notes payable, net of debt issuance cost, long-term | 69,107 | 80,058 |
Total liabilities | 103,450 | 113,432 |
Stockholders' equity | ||
Additional paid in capital | 4,213 | 4,285 |
Retained earnings (accumulated deficit) | 6,655 | (2,812) |
Total stockholders' equity | 10,902 | 1,507 |
Total liabilities and stockholders' equity | 114,352 | 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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 577 | $ 226 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 66,068 | $ 68,526 | $ 68,944 |
Operating expenses | |||
Cost of services | 30,592 | 31,395 | 31,875 |
Selling, general and administrative expenses | 10,451 | 10,147 | 10,234 |
Depreciation and amortization | 7,232 | 7,377 | 8,022 |
Total operating expenses | 48,275 | 48,919 | 50,131 |
Income from operations | 17,793 | 19,607 | 18,813 |
Other income (expense) | |||
Interest expense | (5,844) | (13,249) | (10,634) |
Loss on debt prepayment penalty | (2,303) | ||
Other income | 263 | 204 | 625 |
Total other expense | (5,581) | (15,348) | (10,009) |
Income before income tax (expense) benefit | 12,212 | 4,259 | 8,804 |
Income tax (expense) benefit | (2,745) | 7,856 | (3,658) |
Net income | $ 9,467 | $ 12,115 | $ 5,146 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 3,388,624 | 3,346,689 | 3,283,177 |
Diluted (in shares) | 3,434,862 | 3,445,632 | 3,404,696 |
Basic net income per common share (in dollars per share) | $ 2.79 | $ 3.62 | $ 1.57 |
Diluted net income per common share (in dollars per share) | $ 2.76 | $ 3.52 | $ 1.51 |
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, 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 | |||
Tax withholdings paid on behalf of employees for restricted stock units | (109) | (109) | |||
Issuance of Common Stock (in shares) | 43,871 | ||||
Issuance of Common Stock | $ 1 | (1) | |||
Conversion of Class B Stock to Class A Stock (in shares) | 232,780 | ||||
Conversion of Class B Stock to Class A Stock | $ 2 | ||||
Conversion of Class B Stock to Class A Stock (in shares) | (232,780) | ||||
Conversion of Class B Stock to Class A Stock | $ (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 | |||
Tax withholdings paid on behalf of employees for restricted stock units | (209) | (209) | |||
Issuance of Common Stock (in shares) | 54,939 | ||||
Issuance of Common Stock | $ 1 | 1 | |||
Balance (in shares) at Dec. 31, 2017 | 3,346,689 | ||||
Balance at Dec. 31, 2017 | $ 34 | 4,285 | (2,812) | 1,507 | |
Net income | 9,467 | 9,467 | |||
Stock-based compensation expense | 308 | 308 | |||
Tax withholdings paid on behalf of employees for restricted stock units | (380) | (380) | |||
Issuance of Common Stock (in shares) | 41,935 | ||||
Balance (in shares) at Dec. 31, 2018 | 3,388,624 | ||||
Balance at Dec. 31, 2018 | $ 34 | $ 4,213 | $ 6,655 | $ 10,902 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 9,467 | $ 12,115 | $ 5,146 |
Adjustments to reconcile net income to cash flows provided by operating activities: | |||
Depreciation | 6,906 | 7,001 | 7,137 |
Amortization | 326 | 376 | 885 |
Amortization of loan costs | 476 | 4,823 | 1,397 |
Loss on debt prepayment penalty | 2,303 | ||
Provision (benefit) for deferred income taxes | 1,062 | (9,393) | 2,142 |
Excess tax benefit from stock-based compensation | 144 | 52 | 32 |
Provision for uncollectible accounts receivable | 553 | 357 | 348 |
Stock-based compensation | 308 | 308 | 415 |
Payment in kind interest - subordinated debt | 266 | 273 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (113) | (316) | (4) |
Materials and supplies | (102) | (516) | (278) |
Prepaid expenses and other assets | 1,982 | (189) | (100) |
Accounts payable and accrued expenses | (37) | 215 | (178) |
Advance billings and payments | (203) | 577 | 1,428 |
Other liabilities | (9) | (17) | (6) |
Net cash from operating activities | 20,760 | 17,962 | 18,637 |
Cash flows used in investing activities: | |||
Acquisition and construction of property and equipment | (7,983) | (8,510) | (6,879) |
Retirement of investment | (11) | (1) | (1) |
Net cash used in investing activities | (7,994) | (8,511) | (6,880) |
Cash flows used in financing activities: | |||
Loan origination costs | (64) | (2,144) | (5,242) |
Principal repayment of long-term notes payable | (11,350) | (98,927) | (103,052) |
Proceeds from loan refinancing | 87,000 | 100,300 | |
Debt prepayment penalty fees | (2,303) | ||
Interest rate cap | (4) | ||
CoBank equity account retirement | 119 | 164 | |
Tax withholdings paid on behalf of employees for restricted stock units | (380) | (209) | (109) |
Net cash used in financing activities | (11,679) | (16,419) | (8,103) |
Net increase (decrease) in cash and cash equivalents | 1,087 | (6,968) | 3,654 |
Cash and cash equivalents, beginning of period | 3,570 | 10,538 | 6,884 |
Cash and cash equivalents, end of period | 4,657 | 3,570 | 10,538 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 5,383 | 9,287 | 8,364 |
Income taxes (refunded) paid | (502) | 1,802 | 1,923 |
Conversion of Class B common stock to Class A common stock | 2 | ||
Issuance of Class A common stock | $ 1 | $ 1 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2018 | |
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 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 and business customers throughout Maine and New Hampshire. 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. $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, 2018 | |
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; 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 The 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, 2018, 2017, 81.4% 80.5%, 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 values 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 ASC 350, Intangibles Goodwill and Other 350” 1 Revenue Recognition Local services not Network access no 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 USAC. The FCC’s Rate-of-Return Universal Service Fund Reform order, issued in March 2016, 25 2016 25 2021. October 2011, 95.0% 22.6%, 21.9%, 18.6% December 31, 2018, 2017, 2016, Internet, tran sport service, cable and satellite television and cloud hosting and managed services December 31, 2018, 2017, $2.3 $2.4 Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality, short-term money 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. Property 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. Expenditures 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 asset 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 interest method. Amortization of deferred financing and loan costs is classified as “Interest expense”. Deferred financing and loan costs are presented in the balance sheet as a direct deduction from the related debt liability. 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” 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, 2018, no The Company conducts business in multiple jurisdictions and, as a result, one 2015 Fair Value of Financial Instruments The carrying values 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, 2018, 2017, December 31, 2018, 2017, Income per Common Share The Company 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 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 31, 2017, not 118. 31, 2018, not 2017 Recent Accounting Pronouncements During 2017, 2017 01 2017 15 2018, 2018 01 2018 20. 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 not December 2018, 2018 20, Narrow-Scope Improvements for Lessors. 2016 02, not not not 2016 02. not two 2018 11; not January 1, 2019, $1,073,919 no 2016 02, 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 In November 2018, 2018 19, Codification Improvements to Topic 326, – Credit Losses 2018 19” . 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13” June 2016, first 2016 13, 2018 19. 2016 13 December 15, 2019, December 15, 2018, not |
Note 3 - Goodwill and Intangibl
Note 3 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 3. Goodwill and Intangible Assets ASC 350 one three December 31, 2018, 87.2%, 12.8% 1.0%, October 1, 2018. 50.0% 50.0% no October 1, 2018, 2017. no October 1, 2018, December 31, 2018, In 2017, three 2018, fourth 2018 2019. There was no 2018 2017, $39,199 $5,758 $19 December 31, 2018, 2017. The Company also found no December 31, 2018, 2017, Intangible assets are summarized as follows (in thousands): 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 December 31, 2018 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (23,110 ) $ 915 Contract relationships 19,600 (19,600 ) - Non-competition 107 (107 ) - Trade name 23 (19 ) 4 Total $ 43,755 $ (42,836 ) $ 919 These intangible assets had a range of 2 15 December 31, 2018, Aggregate amortization expense for the years ended December 31, 2016 $ 578 2017 $ 458 2018 $ 408 Expected amortization expense for the years ending December 31, 2019 $ 389 2020 372 2021 158 2022 - Total $ 919 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 201 7 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 13,196 12,999 Telephone equipment 6 - 20 243,346 239,539 Cable television equipment 7 12,682 12,417 Furniture and equipment 8 - 14 3,066 3,087 Vehicles 7 - 9 6,906 6,992 Computer software equipment 5 - 7 19,764 16,830 Internet equipment 5 3,933 3,940 Total property and equipment 304,057 296,968 Accumulated depreciation and amortization (251,984 ) (246,080 ) Net property and equipment $ 52,073 $ 50,888 Depreciation expense for the years ended December 31, 2018, 2017 2016, $6,906 $7,001 $7,137 82 82 $307 December 31, 2018, 2017 2016, |
Note 5 - Other Accounts Receiva
Note 5 - Other Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
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, 201 8 201 7 Carrier access bills receivable $ 277 $ 282 National Exchange Carrier Association receivable 1,295 1,238 Receivables from Alabama Service Fund 53 53 Other miscellaneous 274 302 $ 1,899 $ 1,875 |
Note 6 - Investments
Note 6 - Investments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Investment [Text Block] | 6. Investments Investments consist of the following (in thousands) as of: December 31, 201 8 201 7 Investment in CoBank stock $ 1,192 $ 1,311 Rental property 219 245 Other miscellaneous 87 76 $ 1,498 $ 1,632 The investment in CoBank stock is carried at historical cost due to no no two $4 December 31, 2018. |
Note 7 - Notes Payable
Note 7 - Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. Notes Payable Notes payable consists of the following (in thousands, except percentages) as of: December 31, Current Long-term 2018 2017 New Credit Facility with CoBank, ACB; variable interest rate of 6.77% at December 31, 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 $ 70,212 $ 74,562 $ 85,912 Debt issuance cost (446 ) (1,105 ) (1,551 ) (1,963 ) Notes payable, net of debt issuance cost $ 3,904 $ 69,107 $ 73,011 $ 83,949 The Previous Credit Facility was fully repaid on February 17, 2016. $2.7 third $141 December 31, 2016, $140 $15 December 31, 2016, The Senior Loan Agreement was fully repaid on November 2, 2017. $4.9 $896 December 31, 2017, $3,070 $14 December 31, 2017, The Subordinated Loan Agreement was fully repaid on November 2, 2017. $892 $133 December 31, 2017, $621 $14 December 31, 2017, Associated with the New Credit Facility, the Company has $2.1 $476 $75 December 31, 2018, 2017, 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, 2018. November 3, 2022. no December 31, 2018. 0.50% 0.38% October 22, 2018. $24 $4 December 31, 2018, 2017, Maturities of notes payable for the next five no 2019 $ 4,350 2020 4,350 2021 4,350 2022 61,512 2023 - Total $ 74,562 A total of $2.1 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, 2018, |
Note 8 - Income Tax
Note 8 - Income Tax | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. Income Tax Income tax expense for the years ended December 31, 2018, 2017, 2016 For the Years Ended December 31, 201 8 201 7 201 6 Federal income taxes Current $ 1,036 $ 1,201 $ 1,176 Deferred 898 (9,332 ) 1,872 Total federal tax expense (benefit) 1,934 (8,131 ) 3,048 State income taxes Current 503 284 308 Deferred 308 (9 ) 302 Total state tax expense 811 275 610 Total income tax expense (benefit) $ 2,745 $ (7,856 ) $ 3,658 Public Law No: 115 97, December 22, 2017. 35% 21%. 740 21%. 118, December 31, 2017, $9.3 one 31, 2017, not 118. 31, 2018, not 2017 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2018, 2017, December 31, 201 8 20 1 7 Deferred tax liabilities: Amortization $ (10,947 ) $ (11,058 ) Depreciation (9,701 ) (8,408 ) Prepaid expense (357 ) (151 ) State net operating loss carryforwards and adjustments (277 ) (266 ) Other (8 ) (8 ) Total deferred tax liabilities $ (21,290 ) $ (19,891 ) Deferred tax assets: Deferred compensation $ 142 $ 131 Advance payments 612 520 Bad debt 145 71 Other 246 230 Total deferred tax assets $ 1,145 $ 952 As of December 31, 2018, $0 $43 December 31, 2017, $0 $33 no December 31, 2018, December 31, 2017. December 31, 2018, no The effective income tax rates as of December 31, 2018, 2017, 2016, 22.5%, 184.5 41.5%, ASC 740 December 31, 2018, 2017, 2016, not 2015 Total 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, 2018, 2017, 2016. For the Years Ended December 31, 20 1 8 201 7 201 6 Federal income tax at statutory rate 21 % 35 % 35 % Federal income tax provision at statutory rate $ 2,565 $ 1,491 $ 3,081 State income tax provision, net of federal income tax effects 641 177 397 Federal tax rate change - (9,336 ) - Adjustments for prior years (293 ) Other (168 ) (188 ) 180 Provision (benefit) for income taxes $ 2,745 $ (7,856 ) $ 3,658 Effective income tax rate 22.5 % (184.5 %) 41.5 % |
Note 9 - Employee Benefit Progr
Note 9 - Employee Benefit Program | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. Employee Benefit Program Employees of all subsidiaries except BTC participate in a Company-sponsored defined contribution savings plan under Section 401 not $18.5 $18.5 $18 2018, 2017 2016, 4.5% 2018, 2017 2016. December 31, 2018, 2017, 2016, $470 $486 $508 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 (“NTCA”). 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 1959. 0.3% 0.1% December 2017, 98%. June 30, 2018 $2.4 500 1.0% 2018, 2017 2016, 4.5% 401 no 2018, 2017 2016. December 31, 2018, 2017, 2016, $21 $16 $16 |
Note 10 - Net Income Per Common
Note 10 - Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. 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): For the Years Ended December 31, 2018 2017 2016 Weighted average number of common shares outstanding - basic 3,388,624 3,346,689 3,283,177 Effect of dilutive securities 46,238 98,943 121,519 Weighted average number of common shares and potential common shares - diluted 3,434,862 3,445,632 3,404,696 Net income $ 9,467 $ 12,115 $ 5,146 Net income per common share - basic $ 2.79 $ 3.62 $ 1.57 Net income per common share - diluted $ 2.76 $ 3.52 $ 1.51 |
Note 11 - Revenue Streams and C
Note 11 - Revenue Streams and Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 11. Revenue Streams and Concentrations Revenue Streams The Company identifies its revenue streams with similar characteristics as follows (in thousands): Year Ended December 31, 2018 Local services $ 21,507 Network access 21,100 Internet 15,224 Transport services 4,774 Video and security 2,824 Managed services 639 Total revenues $ 66,068 ASU 2014 09 2, Summary of Significant Accounting Policies – Recently Adopted Accounting Pronouncements five 2014 09. The following table identifies revenue generated from customers (in thousands): Year Ended December 31, 2018 Local services $ 21,507 Network access 4,645 Internet 15,224 Transport services 4,623 Video and security 2,824 Managed services 639 Total revenue generated from customers $ 49,462 The following table summarizes the revenue generated from contracts with customers among each revenue stream as of December 31, 2018 ( Year Ended December 31, 2018 % In-Scope % Total Month to month (“MTM”) customers $ 30,117 61.7 % 45.6 % Competitive local exchange carrier (“CLEC”) business customers 14,061 28.7 21.3 Network access 2,713 5.6 4.1 Total revenue streams 46,891 96.0 71.0 Global access* 1,932 4.0 2.9 Total revenue from contracts with customers 48,823 100.0 % 73.9 Managed services** 639 n/a 1.0 Total revenue generated from customers 49,462 n/a 74.9 Indefeasible rights-of-use agreements** 151 n/a 0.2 Network access** 16,455 n/a 24.9 Total revenues $ 66,068 100.0 % *Fixed fees charged to MTM customers and CLEC business customers. ** Revenue generated from sources not 2014 09. 2, Summary of Significant Accounting Policies – Revenue Recognition Payment terms vary by customer. The Company typically invoices customers in the month following when the service is 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 December 31, 2018, $9.0 December 31, 2018, $0.9 $8.0 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, The deferred revenue balance as of September 30, 2018, $3.8 $1.4 three December 31, 2018, December 31, 2018, |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
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 820 820 three ● Level 1 ● Level 2 1, ● Level 3 may not 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 New Credit Facility Carrying Value Fair Value Notes payable December 31, 2017 $ 85,912 $ 86,542 Notes payable December 31, 2018 $ 74,562 $ 74,702 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. Commitments and Contingencies From time to time, the Company may may none Leases Minimum future rental commitments under non-cancellable operating leases, primarily for real property and office facilities, at December 31, 2018, 2019 $ 451 2020 431 2021 432 2022 331 2023 272 Thereafter 1,109 Total $ 3,026 Rent expense for the years ended December 31, 2018, 2017 2016, $542 $539 $562 |
Note 14 - Stock Plans
Note 14 - Stock Plans | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 14. Stock Plans During the twelve December 31, 2018, 34,755 366,356 one three 366,356 twelve December 31, 2018, 267,413 December 31, 2017. no The following table summarizes RSU activity as of December 31, 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 December 31, 2018 66,312 $ 9.06 Stock-based compensation expense related to RSUs was $290 $308 December 31, 2018, 2017, no 2014 As of December 31, 2018, 2017, $216 $343 2021. The tax benefit recognized with respect to RSUs during the years ended December 31, 2018, 2017, $144 $52 On October 15, 2018, 29,460 20,540 five 20% October 15, 2019, one no The following table summarizes ISO and NQ stock option activity as of December 31, 2018: ISO s and NQ S tock O ptions Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 - $ - Granted 50,000 $ 16.97 Vested - $ - Forfeited or cancelled - $ - Outstanding at December 31, 2018 50,000 $ 16.97 Stock-based compensation expense related to ISOs and NQ stock options was $18 December 31, 2018. As of December 31, 2018, $416 2023. |
Note 15 - Selected Quarterly Fi
Note 15 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 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 Fiscal 2018: Revenue $ 16,726 $ 16,890 $ 16,252 $ 16,200 Operating income $ 4,061 $ 5,172 $ 4,536 $ 4,024 Net income $ 1,996 $ 2,908 $ 2,326 $ 2,237 Net income per common share - basic $ 0.59 $ 0.86 $ 0.69 $ 0.66 Net income per common share - diluted $ 0.58 $ 0.85 $ 0.67 $ 0.65 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. $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; 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 The 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, 2018, 2017, 81.4% 80.5%, 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 values 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 ASC 350, Intangibles Goodwill and Other 350” 1 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Local services not Network access no 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 USAC. The FCC’s Rate-of-Return Universal Service Fund Reform order, issued in March 2016, 25 2016 25 2021. October 2011, 95.0% 22.6%, 21.9%, 18.6% December 31, 2018, 2017, 2016, Internet, tran sport service, cable and satellite television and cloud hosting and managed services December 31, 2018, 2017, $2.3 $2.4 |
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 money 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] | Property 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. Expenditures 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 asset 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 interest method. Amortization of deferred financing and loan costs is classified as “Interest expense”. Deferred financing and loan costs are presented in the balance sheet as a direct deduction from the related debt liability. 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” 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, 2018, no The Company conducts business in multiple jurisdictions and, as a result, one 2015 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying values 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, 2018, 2017, December 31, 2018, 2017, |
Earnings Per Share, Policy [Policy Text Block] | Income per Common Share The Company 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 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 31, 2017, not 118. 31, 2018, not 2017 Recent Accounting Pronouncements During 2017, 2017 01 2017 15 2018, 2018 01 2018 20. 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 not December 2018, 2018 20, Narrow-Scope Improvements for Lessors. 2016 02, not not not 2016 02. not two 2018 11; not January 1, 2019, $1,073,919 no 2016 02, 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 In November 2018, 2018 19, Codification Improvements to Topic 326, – Credit Losses 2018 19” . 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13” June 2016, first 2016 13, 2018 19. 2016 13 December 15, 2019, December 15, 2018, not |
Note 3 - Goodwill and Intangi_2
Note 3 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 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 December 31, 2018 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (23,110 ) $ 915 Contract relationships 19,600 (19,600 ) - Non-competition 107 (107 ) - Trade name 23 (19 ) 4 Total $ 43,755 $ (42,836 ) $ 919 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2016 $ 578 2017 $ 458 2018 $ 408 2019 $ 389 2020 372 2021 158 2022 - Total $ 919 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Estimated December 31, Life 2018 201 7 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 13,196 12,999 Telephone equipment 6 - 20 243,346 239,539 Cable television equipment 7 12,682 12,417 Furniture and equipment 8 - 14 3,066 3,087 Vehicles 7 - 9 6,906 6,992 Computer software equipment 5 - 7 19,764 16,830 Internet equipment 5 3,933 3,940 Total property and equipment 304,057 296,968 Accumulated depreciation and amortization (251,984 ) (246,080 ) Net property and equipment $ 52,073 $ 50,888 |
Note 5 - Other Accounts Recei_2
Note 5 - Other Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 8 201 7 Carrier access bills receivable $ 277 $ 282 National Exchange Carrier Association receivable 1,295 1,238 Receivables from Alabama Service Fund 53 53 Other miscellaneous 274 302 $ 1,899 $ 1,875 |
Note 6 - Investments (Tables)
Note 6 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Investment [Table Text Block] | December 31, 201 8 201 7 Investment in CoBank stock $ 1,192 $ 1,311 Rental property 219 245 Other miscellaneous 87 76 $ 1,498 $ 1,632 |
Note 7 - Notes Payable (Tables)
Note 7 - Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2019 $ 4,350 2020 4,350 2021 4,350 2022 61,512 2023 - Total $ 74,562 |
New Credit Facility [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, Current Long-term 2018 2017 New Credit Facility with CoBank, ACB; variable interest rate of 6.77% at December 31, 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 $ 70,212 $ 74,562 $ 85,912 Debt issuance cost (446 ) (1,105 ) (1,551 ) (1,963 ) Notes payable, net of debt issuance cost $ 3,904 $ 69,107 $ 73,011 $ 83,949 |
Note 8 - Income Tax (Tables)
Note 8 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Years Ended December 31, 201 8 201 7 201 6 Federal income taxes Current $ 1,036 $ 1,201 $ 1,176 Deferred 898 (9,332 ) 1,872 Total federal tax expense (benefit) 1,934 (8,131 ) 3,048 State income taxes Current 503 284 308 Deferred 308 (9 ) 302 Total state tax expense 811 275 610 Total income tax expense (benefit) $ 2,745 $ (7,856 ) $ 3,658 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 201 8 20 1 7 Deferred tax liabilities: Amortization $ (10,947 ) $ (11,058 ) Depreciation (9,701 ) (8,408 ) Prepaid expense (357 ) (151 ) State net operating loss carryforwards and adjustments (277 ) (266 ) Other (8 ) (8 ) Total deferred tax liabilities $ (21,290 ) $ (19,891 ) Deferred tax assets: Deferred compensation $ 142 $ 131 Advance payments 612 520 Bad debt 145 71 Other 246 230 Total deferred tax assets $ 1,145 $ 952 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Years Ended December 31, 20 1 8 201 7 201 6 Federal income tax at statutory rate 21 % 35 % 35 % Federal income tax provision at statutory rate $ 2,565 $ 1,491 $ 3,081 State income tax provision, net of federal income tax effects 641 177 397 Federal tax rate change - (9,336 ) - Adjustments for prior years (293 ) Other (168 ) (188 ) 180 Provision (benefit) for income taxes $ 2,745 $ (7,856 ) $ 3,658 Effective income tax rate 22.5 % (184.5 %) 41.5 % |
Note 10 - Net Income Per Comm_2
Note 10 - Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended December 31, 2018 2017 2016 Weighted average number of common shares outstanding - basic 3,388,624 3,346,689 3,283,177 Effect of dilutive securities 46,238 98,943 121,519 Weighted average number of common shares and potential common shares - diluted 3,434,862 3,445,632 3,404,696 Net income $ 9,467 $ 12,115 $ 5,146 Net income per common share - basic $ 2.79 $ 3.62 $ 1.57 Net income per common share - diluted $ 2.76 $ 3.52 $ 1.51 |
Note 11 - Revenue Streams and_2
Note 11 - Revenue Streams and Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year Ended December 31, 2018 Local services $ 21,507 Network access 21,100 Internet 15,224 Transport services 4,774 Video and security 2,824 Managed services 639 Total revenues $ 66,068 Year Ended December 31, 2018 Local services $ 21,507 Network access 4,645 Internet 15,224 Transport services 4,623 Video and security 2,824 Managed services 639 Total revenue generated from customers $ 49,462 Year Ended December 31, 2018 % In-Scope % Total Month to month (“MTM”) customers $ 30,117 61.7 % 45.6 % Competitive local exchange carrier (“CLEC”) business customers 14,061 28.7 21.3 Network access 2,713 5.6 4.1 Total revenue streams 46,891 96.0 71.0 Global access* 1,932 4.0 2.9 Total revenue from contracts with customers 48,823 100.0 % 73.9 Managed services** 639 n/a 1.0 Total revenue generated from customers 49,462 n/a 74.9 Indefeasible rights-of-use agreements** 151 n/a 0.2 Network access** 16,455 n/a 24.9 Total revenues $ 66,068 100.0 % |
Note 12 - Fair Value Measurem_2
Note 12 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | New Credit Facility Carrying Value Fair Value Notes payable December 31, 2017 $ 85,912 $ 86,542 Notes payable December 31, 2018 $ 74,562 $ 74,702 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 451 2020 431 2021 432 2022 331 2023 272 Thereafter 1,109 Total $ 3,026 |
Note 14 - Stock Plans (Tables)
Note 14 - Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 66,312 $ 9.06 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | ISO s and NQ S tock O ptions Weighted Average Grant Date Fair Value Outstanding at December 31, 2017 - $ - Granted 50,000 $ 16.97 Vested - $ - Forfeited or cancelled - $ - Outstanding at December 31, 2018 50,000 $ 16.97 |
Note 15 - Selected Quarterly _2
Note 15 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Quarter Second Quarter Third Quarter Fourth Quarter 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 Fiscal 2018: Revenue $ 16,726 $ 16,890 $ 16,252 $ 16,200 Operating income $ 4,061 $ 5,172 $ 4,536 $ 4,024 Net income $ 1,996 $ 2,908 $ 2,326 $ 2,237 Net income per common share - basic $ 0.59 $ 0.86 $ 0.69 $ 0.66 Net income per common share - diluted $ 0.58 $ 0.85 $ 0.67 $ 0.65 |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | Nov. 02, 2017USD ($) | Feb. 17, 2016USD ($) | Jan. 25, 2016USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Number of Reportable Segments | 1 | |||||
Debt Issuance Costs, Net, Total | $ 15,000 | |||||
Write off of Deferred Debt Issuance Cost | 140,000 | |||||
Long-term Debt, Total | $ 74,562,000 | |||||
Consortium of Banks Led By CoBank ABC [Member] | ||||||
Debt Instrument, Term | 5 years | |||||
Debt Issuance Costs, Net, Total | $ 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 | |||||
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, Total | 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, Total | 1,000,000 | |||||
Write off of Deferred Debt Issuance Cost | $ 3,070,000 | |||||
Payments of Debt Restructuring Costs | $ 77,900 | |||||
Capital Expenditure Limit | $ 7,500,000 | 8,500,000 | ||||
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 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Percentage of Net Property, Plant, and Equipment Accounted for Under ASC980 | 81.40% | 80.50% | ||
Revenue Requirement, Cap Interest Rate, Percent of Prior Year | 95.00% | |||
Concentration Risk, Percentage | 100.00% | |||
Deferred Revenue | $ 2,300,000 | $ 2,400,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | $ 0 | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 9,300,000 | |||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 1,073,919 | |||
Operating Lease, Liability, Total | $ 1,073,919 | |||
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 22.60% | 21.90% | 18.60% |
Note 3 - Goodwill and Intangi_3
Note 3 - Goodwill and Intangible Assets (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Number of Reportable Segments | 1 | |
Number of Reporting Units | 3 | |
Goodwill Impairment, Weighted Percent Used in Discontinued Cash Flow Method | 50.00% | |
Goodwill Impairment, Weighted Percent Used in Guideline Public Company Method | 50.00% | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Goodwill, Ending Balance | 44,976 | 44,976 |
Impairment of Intangible Assets (Excluding Goodwill), Total | $ 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), Total | $ 0 | 0 |
Goodwill, Ending Balance | $ 39,199 | 39,199 |
Missouri [Member] | ||
Percent of Goodwill | 12.80% | |
Goodwill, Ending Balance | $ 5,758 | 5,758 |
New England [Member] | ||
Percent of Goodwill | 1.00% | |
Goodwill, Ending Balance | $ 19 | $ 19 |
Note 3 - Goodwill and Intangi_4
Note 3 - Goodwill and Intangible Assets - Intangible Asset Summaries (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | $ 43,755 | $ 43,755 |
Accumulated Amortization | (42,836) | (42,427) |
Net Book Value | 919 | 1,328 |
Customer Relationships [Member] | ||
Carrying Value | 24,025 | 24,025 |
Accumulated Amortization | (23,110) | (22,705) |
Net Book Value | 915 | 1,320 |
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 | (107) | (105) |
Net Book Value | 2 | |
Trade Names [Member] | ||
Carrying Value | 23 | 23 |
Accumulated Amortization | (19) | (17) |
Net Book Value | $ 4 | $ 6 |
Note 3 - Goodwill and Intangi_5
Note 3 - Goodwill and Intangible Assets - Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
2,016 | $ 408 | $ 458 | $ 578 |
2,019 | 389 | ||
2,020 | 372 | ||
2,021 | 158 | ||
2,022 | |||
Total | $ 919 | $ 1,328 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation, Total | $ 6,906 | $ 7,001 | $ 7,137 |
Amortization, Total | 326 | 376 | 885 |
Telephone Plant Adjustment [Member] | |||
Amortization, Total | $ (82) | $ (82) | $ 307 |
Note 4 - Property and Equipme_4
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant and Equipment, Gross | $ 304,057 | $ 296,968 |
Accumulated depreciation and amortization | (251,984) | (246,080) |
Net property and equipment | 52,073 | 50,888 |
Land [Member] | ||
Property Plant and Equipment, Gross | 1,164 | 1,164 |
Building Improvements [Member] | ||
Property Plant and Equipment, Gross | $ 13,196 | 12,999 |
Estimated Life (Year) | 40 years | |
Building Improvements [Member] | Minimum [Member] | ||
Estimated Life (Year) | 20 years | |
Telephone Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 243,346 | 239,539 |
Estimated Life (Year) | 20 years | |
Telephone Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 6 years | |
Cable Television Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 12,682 | 12,417 |
Cable Television Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 7 years | |
Furniture and Fixtures [Member] | ||
Property Plant and Equipment, Gross | $ 3,066 | 3,087 |
Estimated Life (Year) | 14 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated Life (Year) | 8 years | |
Vehicles [Member] | ||
Property Plant and Equipment, Gross | $ 6,906 | 6,992 |
Estimated Life (Year) | 9 years | |
Vehicles [Member] | Minimum [Member] | ||
Estimated Life (Year) | 7 years | |
Computer Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 19,764 | 16,830 |
Estimated Life (Year) | 7 years | |
Computer Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 5 years | |
Internet Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 3,933 | $ 3,940 |
Internet Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 5 years |
Note 5 - Other Accounts Recei_3
Note 5 - Other Accounts Receivable - Schedule of Other Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Receivables | $ 1,899 | $ 1,875 |
Carrier Access Bills Receivable [Member] | ||
Other Receivables | 277 | 282 |
NECA Receivable [Member] | ||
Other Receivables | 1,295 | 1,238 |
Receivables from Alabama Service Fund [Member] | ||
Other Receivables | 53 | 53 |
Other Miscellaneous [Member] | ||
Other Receivables | $ 274 | $ 302 |
Note 6 - Investments (Details T
Note 6 - Investments (Details Textual) - Interest Rate Cap [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative, Term of Contract | 2 years |
Derivative Asset, Total | $ 4 |
Note 6 - Investments - Schedule
Note 6 - Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments | $ 1,498 | $ 1,632 |
CoBank Stock, at Cost [Member] | ||
Investments | 1,192 | 1,311 |
Rental Property [Member] | ||
Investments | 219 | 245 |
Other Miscellaneous Investments [Member] | ||
Investments | $ 87 | $ 76 |
Note 7 - Notes Payable (Details
Note 7 - Notes Payable (Details Textual) - USD ($) | Oct. 22, 2018 | Oct. 21, 2018 | Feb. 17, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 03, 2018 | Jan. 25, 2016 |
Amortization of Debt Issuance Costs | $ 476,000 | $ 4,823,000 | $ 1,397,000 | |||||
Write off of Deferred Debt Issuance Cost | $ 140,000 | |||||||
Debt Issuance Costs, Current, Net, Total | $ 2,100,000 | |||||||
Senior Notes [Member] | ||||||||
Debt Issuance Costs, Gross | 4,900,000 | |||||||
Amortization of Debt Issuance Costs | 896,000 | |||||||
Write off of Deferred Debt Issuance Cost | 3,070,000 | |||||||
Legal Fees | 14,000 | |||||||
Subordinated Debt [Member] | ||||||||
Debt Issuance Costs, Gross | 892,000 | |||||||
Amortization of Debt Issuance Costs | 133,000 | |||||||
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 | |||||||
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, Total | 0 | |||||||
New Credit Facility [Member] | ||||||||
Debt Issuance Costs, Gross | 2,100,000 | |||||||
Amortization of Debt Issuance Costs | 476,000 | 75,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | |||||||
Long-term Line of Credit, Total | 0 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.38% | 0.50% | ||||||
Line of Credit Facility, Commitment Fee Amount | 24,000 | $ 4,000 | ||||||
Debt Issuance Costs, Current, Net, Total | $ 446,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | |||||||
Line of Credit Facility, Commitment Fee Amount | $ 32,000 | $ 33,000 |
Note 7 - Notes Payable - New Cr
Note 7 - Notes Payable - New Credit Facility (Details) - USD ($) | Dec. 31, 2018 | Dec. 03, 2018 | Dec. 31, 2017 | Feb. 17, 2016 |
Debt issuance cost, current | $ (2,100,000) | |||
Debt issuance cost | $ (15,000) | |||
Notes payable, net of debt issuance cost, current | $ 3,904,000 | $ 3,891,000 | ||
Notes payable, net of debt issuance cost, long-term | 69,107,000 | 80,058,000 | ||
Notes payable, net of debt issuance cost | 74,562,000 | |||
New Credit Facility [Member] | ||||
Notes payable, current | 4,350,000 | |||
Notes payable, long-term | 70,212,000 | |||
Notes payable, face amount | 74,562,000 | 85,912,000 | ||
Debt issuance cost, current | (446,000) | |||
Debt issuance cost, long-term | (1,105,000) | |||
Debt issuance cost | (1,551,000) | (1,963,000) | ||
Notes payable, net of debt issuance cost, current | 3,904,000 | |||
Notes payable, net of debt issuance cost, long-term | 69,107,000 | |||
Notes payable, net of debt issuance cost | $ 73,011,000 | $ 83,949,000 |
Note 7 - Notes Payable - New _2
Note 7 - Notes Payable - New Credit Facility (Details) (Parentheticals) | Dec. 31, 2018 |
New Credit Facility [Member] | |
Notes payable, interest rate | 6.77% |
Note 7 - Notes Payable - Maturi
Note 7 - Notes Payable - Maturities of Notes Payable (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2,019 | $ 4,350 |
2,020 | 4,350 |
2,021 | 4,350 |
2,022 | 61,512 |
2,023 | |
Total | $ 74,562 |
Note 8 - Income Tax (Details Te
Note 8 - Income Tax (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 9,300,000 | ||
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 22.50% | (184.50%) | 41.50% |
Alternative Minimum Tax [Member] | |||
Tax Credit Carryforward, Amount | $ 0 | $ 0 | |
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards, Total | 0 | 0 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards, Total | $ 43,000 | $ 33,000 |
Note 8 - Income Tax - Tax Effec
Note 8 - Income Tax - Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal income taxes | |||
Current | $ 1,036 | $ 1,201 | $ 1,176 |
Deferred | 898 | (9,332) | 1,872 |
Total federal tax expense (benefit) | 1,934 | (8,131) | 3,048 |
State income taxes | |||
Current | 503 | 284 | 308 |
Deferred | 308 | (9) | 302 |
Total state tax expense | 811 | 275 | 610 |
Total income tax expense (benefit) | $ 2,745 | $ (7,856) | $ 3,658 |
Note 8 - Income Tax - Deferred
Note 8 - Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax liabilities: | ||
Amortization | $ (10,947) | $ (11,058) |
Depreciation | (9,701) | (8,408) |
Prepaid expense | (357) | (151) |
State net operating loss carryforwards and adjustments, liabilties | (277) | (266) |
Other | (8) | (8) |
Total deferred tax liabilities | (21,290) | (19,891) |
Deferred tax assets: | ||
Deferred compensation | 142 | 131 |
Advance payments | 612 | 520 |
Bad debt | 145 | 71 |
Other | 246 | 230 |
Total deferred tax assets | $ 1,145 | $ 952 |
Note 8 - Income Tax - Effective
Note 8 - Income Tax - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal income tax at statutory rate | 21.00% | 35.00% | 35.00% |
Federal income tax provision at statutory rate | $ 2,565 | $ 1,491 | $ 3,081 |
State income tax provision, net of federal income tax effects | 641 | 177 | 397 |
Federal tax rate change | (9,336) | ||
Adjustments for prior years | (293) | ||
Other | (168) | (188) | 180 |
Total income tax expense (benefit) | $ 2,745 | $ (7,856) | $ 3,658 |
Effective income tax rate | 22.50% | (184.50%) | 41.50% |
Note 9 - Employee Benefit Pro_2
Note 9 - Employee Benefit Program (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,500 | $ 18,500 | $ 18,000 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% | |
Defined Contribution Plan, Cost | $ 470,000 | $ 486,000 | $ 508,000 | |
BTC [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% | |
Defined Contribution Plan, Cost | $ 21,000 | $ 16,000 | $ 16,000 | |
Defined Contribution Plan, Minimum Annual Contributions Per Employee, Percent | 1.00% | |||
Multiemployer Plan, Contributions by Employer | $ 0 | $ 0 | $ 0 | |
RSP [Member] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 0.30% | |||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Participants | 0.10% | |||
Defined Benefit Plan, Funded Percentage | 98.00% | |||
Multiemployer Plans, Plan Assets | $ 2,400,000,000 |
Note 10 - Net Income Per Comm_3
Note 10 - 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average number of common shares outstanding - basic (in shares) | 3,388,624 | 3,346,689 | 3,283,177 | ||||||||
Effect of dilutive securities (in shares) | 46,238 | 98,943 | 121,519 | ||||||||
Weighted average number of common shares and potential common shares - diluted (in shares) | 3,434,862 | 3,445,632 | 3,404,696 | ||||||||
Net income | $ 9,467 | $ 12,115 | $ 5,146 | ||||||||
Net income per common share - basic (in dollars per share) | $ 0.66 | $ 0.69 | $ 0.86 | $ 0.59 | $ 2.21 | $ 0.67 | $ 0.46 | $ 0.48 | $ 2.79 | $ 3.62 | $ 1.57 |
Net income per common share - diluted (in dollars per share) | $ 0.65 | $ 0.67 | $ 0.85 | $ 0.58 | $ 2.14 | $ 0.65 | $ 0.45 | $ 0.47 | $ 2.76 | $ 3.52 | $ 1.51 |
Note 11 - Revenue Streams and_3
Note 11 - Revenue Streams and Concentrations (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Jan. 01, 2018 | |
Revenue, Remaining Performance Obligation, Amount | $ 9 | $ 9 | ||||
Contract with Customer, Liability, Total | $ 3.8 | $ 3.9 | $ 4.1 | |||
Contract with Customer, Liability, Revenue Recognized | 1.4 | $ 1.4 | $ 1.5 | |||
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 | $ 8 | $ 8 | ||||
Long-term Contract with Customer [Member] | Minimum [Member] | ||||||
Revenue, Expected to Recognize, Term | 2 years | |||||
Long-term Contract with Customer [Member] | Maximum [Member] | ||||||
Revenue, Expected to Recognize, Term | 5 years |
Note 11 - Revenue Streams and_4
Note 11 - Revenue Streams and Concentrations - Revenue Streams (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues | $ 16,200 | $ 16,252 | $ 16,890 | $ 16,726 | $ 16,794 | $ 16,946 | $ 17,406 | $ 17,380 | $ 66,068 | $ 68,526 | $ 68,944 | |
Revenues, percentage | 100.00% | |||||||||||
Month-to-Month Customers [Member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | $ 30,117 | |||||||||||
Revenues, percentage within scope of ASU 2014-09 | 61.70% | |||||||||||
Month-to-Month Customers [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 45.60% | |||||||||||
Competitive Local Exchange Carrier Business Customers [Member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | $ 14,061 | |||||||||||
Revenues, percentage within scope of ASU 2014-09 | 28.70% | |||||||||||
Competitive Local Exchange Carrier Business Customers [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 21.30% | |||||||||||
Network Access Customers [member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | $ 2,713 | |||||||||||
Revenues, percentage within scope of ASU 2014-09 | 5.60% | |||||||||||
Network Access Customers [member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 4.10% | |||||||||||
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | $ 46,891 | |||||||||||
Revenues, percentage within scope of ASU 2014-09 | 96.00% | |||||||||||
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 71.00% | |||||||||||
Global Access Customers [Member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | [1] | $ 1,932 | ||||||||||
Revenues, percentage within scope of ASU 2014-09 | [1] | 4.00% | ||||||||||
Global Access Customers [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | [1] | 2.90% | ||||||||||
Month-to-Month, Competitive Local Exchange Carrier Business, Network Access, and Global Access Customers [Member] | ||||||||||||
Revenues, within scope of ASU 2014-09 | $ 48,823 | |||||||||||
Revenues, percentage within scope of ASU 2014-09 | 100.00% | |||||||||||
Month-to-Month, Competitive Local Exchange Carrier Business, Network Access, and Global Access Customers [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 73.90% | |||||||||||
Managed Services [Member] | ||||||||||||
Revenues | [2] | $ 639 | ||||||||||
Managed Services [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | [2] | 1.00% | ||||||||||
Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | $ 49,462 | |||||||||||
Sales Channel, Directly to Consumer [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | 74.90% | |||||||||||
Local services [Member] | ||||||||||||
Revenues | $ 21,507 | |||||||||||
Local services [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 21,507 | |||||||||||
Network Access [Member] | ||||||||||||
Revenues | 21,100 | |||||||||||
Network Access [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 4,645 | |||||||||||
Internet [Member] | ||||||||||||
Revenues | 15,224 | |||||||||||
Internet [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 15,224 | |||||||||||
Transport Services [Member] | ||||||||||||
Revenues | 4,774 | |||||||||||
Transport Services [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 4,623 | |||||||||||
Video and Security [Member] | ||||||||||||
Revenues | 2,824 | |||||||||||
Video and Security [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 2,824 | |||||||||||
Management Service [Member] | ||||||||||||
Revenues | 639 | |||||||||||
Management Service [Member] | Sales Channel, Directly to Consumer [Member] | ||||||||||||
Revenues | 639 | |||||||||||
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | ||||||||||||
Revenues | [2] | $ 151 | ||||||||||
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | [2] | 0.20% | ||||||||||
Network Access, Outside of ASU 2014-09 Scope [Member] | ||||||||||||
Revenues | [2] | $ 16,455 | ||||||||||
Network Access, Outside of ASU 2014-09 Scope [Member] | Sales Revenue, Services, Net [Member] | ||||||||||||
Revenues, percentage | [2] | 24.90% | ||||||||||
[1] | Fixed fees charged to MTM customers and CLEC business customers. | |||||||||||
[2] | Revenue generated from sources not within the scope of ASU 2014-09. |
Note 12 - Fair Value Measurem_3
Note 12 - Fair Value Measurement - Fair Value of Long-term Debt 3 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt, Total | $ 74,562 | |
New Credit Facility [Member] | ||
Long-term Debt, Total | 73,011 | $ 83,949 |
Reported Value Measurement [Member] | New Credit Facility [Member] | ||
Long-term Debt, Total | 74,562 | 85,912 |
Estimate of Fair Value Measurement [Member] | New Credit Facility [Member] | ||
Long-term Debt, Total | $ 74,702 | $ 86,542 |
Note 13 - Commitments and Con_3
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Rent Expense, Net, Total | $ 542 | $ 539 | $ 562 |
Note 13 - Commitments and Con_4
Note 13 - Commitments and Contingencies - Minimum Future Rental Payments Under Non-Cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2,019 | $ 451 |
2,020 | 431 |
2,021 | 432 |
2,022 | 331 |
2,023 | 272 |
Thereafter | 1,109 |
Total | $ 3,026 |
Note 14 - Stock Plans (Details
Note 14 - Stock Plans (Details Textual) - USD ($) $ in Thousands | Oct. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 416 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 144 | $ 52 | |
Incentive and Non-Qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
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 | $ 0 | |
Allocated Share-based Compensation Expense, Total | 290 | $ 308 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 216 | $ 343 | |
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 | ||
Incentive Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 29,460 | ||
Non-Qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,540 | ||
Incentive and Non-Qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Allocated Share-based Compensation Expense, Total | $ 18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 50,000 |
Note 14 - Stock Plans - Summary
Note 14 - Stock Plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock units outstanding (in shares) | 98,943 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 4.51 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 34,755 | 366,356 |
Granted, weighted average grant date fair value (in dollars per share) | $ 13.30 | |
Restricted stock units vested (in shares) | (67,386) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 4.56 | |
Restricted stock units forfeited or cancelled (in shares) | ||
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | ||
Restricted stock units outstanding (in shares) | 66,312 | 98,943 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 9.06 | $ 4.51 |
Note 14 - Stock Plans - Summa_2
Note 14 - Stock Plans - Summary of Stock Option Activity (Details) - Incentive and Non-Qualified Stock Options [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Stock options outstanding (in shares) | shares | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 50,000 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.97 |
Stock options vested (in shares) | shares | |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | |
Stock options forfeited or cancelled (in shares) | shares | |
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | $ / shares | |
Stock options outstanding (in shares) | shares | 50,000 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.97 |
Note 15 - Selected Quarterly _3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 16,200 | $ 16,252 | $ 16,890 | $ 16,726 | $ 16,794 | $ 16,946 | $ 17,406 | $ 17,380 | $ 66,068 | $ 68,526 | $ 68,944 |
Operating income | 4,024 | 4,536 | 5,172 | 4,061 | 4,544 | 4,989 | 5,053 | 5,021 | $ 17,793 | $ 19,607 | $ 18,813 |
Net income | $ 2,237 | $ 2,326 | $ 2,908 | $ 1,996 | $ 7,382 | $ 1,589 | $ 1,536 | $ 1,608 | |||
Net income per common share - basic (in dollars per share) | $ 0.66 | $ 0.69 | $ 0.86 | $ 0.59 | $ 2.21 | $ 0.67 | $ 0.46 | $ 0.48 | $ 2.79 | $ 3.62 | $ 1.57 |
Net income per common share - diluted (in dollars per share) | $ 0.65 | $ 0.67 | $ 0.85 | $ 0.58 | $ 2.14 | $ 0.65 | $ 0.45 | $ 0.47 | $ 2.76 | $ 3.52 | $ 1.51 |