Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 11, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | OTELCO INC. | |
Entity Central Index Key | 0001288359 | |
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 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 0 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 3,410,936 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 5,478,000 | $ 4,657,000 |
Accounts receivable: | ||
Due from subscribers, net of allowance for doubtful accounts of $539 and $577, respectively | 3,931,000 | 4,183,000 |
Other | 2,044,000 | 1,899,000 |
Materials and supplies | 3,636,000 | 2,802,000 |
Prepaid expenses | 1,167,000 | 1,198,000 |
Other assets | 251,000 | |
Total current assets | 16,507,000 | 14,739,000 |
Property and equipment, net | 51,795,000 | 52,073,000 |
Goodwill | 44,976,000 | 44,976,000 |
Intangible assets, net | 820,000 | 919,000 |
Operating lease right-of-use asset | 981,000 | |
Investments | 1,492,000 | 1,498,000 |
Interest rate cap | 4,000 | |
Other assets | 245,000 | 143,000 |
Total assets | 116,816,000 | 114,352,000 |
Current liabilities | ||
Accounts payable | 1,248,000 | 1,331,000 |
Accrued expenses | 5,517,000 | 5,054,000 |
Advance billings and payments | 1,568,000 | 1,614,000 |
Customer deposits | 49,000 | 48,000 |
Current operating lease liability | 339,000 | |
Current maturity of long-term notes payable, net of debt issuance cost | 3,909,000 | 3,904,000 |
Total current liabilities | 12,630,000 | 11,951,000 |
Deferred income taxes | 20,145,000 | 20,145,000 |
Advance billings and payments | 2,187,000 | 2,234,000 |
Other liabilities | 19,000 | 13,000 |
Long-term operating lease liability | 642,000 | |
Long-term notes payable, less current maturities and debt issuance cost | 68,122,000 | 69,107,000 |
Total liabilities | 103,745,000 | 103,450,000 |
Stockholders' equity | ||
Additional paid in capital | 4,101,000 | 4,213,000 |
Retained earnings | 8,936,000 | 6,655,000 |
Total stockholders' equity | 13,071,000 | 10,902,000 |
Total liabilities and stockholders' equity | 116,816,000 | 114,352,000 |
Common Class A [Member] | ||
Stockholders' equity | ||
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 3,410,936 and 3,388,624 shares, respectively | $ 34,000 | $ 34,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 539 | $ 577 |
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) | 3,410,936 | 3,388,624 |
Common stock, outstanding (in shares) | 3,410,936 | 3,388,624 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | $ 15,755 | $ 16,726 |
Operating expenses | ||
Cost of services | 7,602 | 7,965 |
Selling, general and administrative expenses | 2,473 | 2,881 |
Depreciation and amortization | 1,917 | 1,819 |
Total operating expenses | 11,992 | 12,665 |
Income from operations | 3,763 | 4,061 |
Other income (expense) | ||
Interest expense | (1,366) | (1,459) |
Other income | 594 | 168 |
Total other expense | (772) | (1,291) |
Income before income tax expense | 2,991 | 2,770 |
Income tax expense | (710) | (774) |
Net income | $ 2,281 | $ 1,996 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 3,410,936 | 3,388,624 |
Diluted (in shares) | 3,431,229 | 3,420,181 |
Basic net income per common share (in dollars per share) | $ 0.67 | $ 0.59 |
Diluted net income per common share (in dollars per share) | $ 0.66 | $ 0.58 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 3,346,689 | |||
Balance at Dec. 31, 2017 | $ 34 | $ 4,285 | $ (2,812) | $ 1,507 |
Net income | 1,996 | 1,996 | ||
Stock-based compensation expense | 71 | 71 | ||
Tax withholdings paid on behalf of employees for restricted stock units | (380) | (380) | ||
Issuance of Class A Stock (in shares) | 41,935 | |||
Issuance of Class A Stock | ||||
Balance (in shares) at Mar. 31, 2018 | 3,388,624 | |||
Balance at Mar. 31, 2018 | $ 34 | 3,976 | (816) | 3,194 |
Balance (in shares) at Dec. 31, 2018 | 3,388,624 | |||
Balance at Dec. 31, 2018 | $ 34 | 4,213 | 6,655 | 10,902 |
Net income | 2,281 | 2,281 | ||
Stock-based compensation expense | 71 | 71 | ||
Tax withholdings paid on behalf of employees for restricted stock units | (183) | (183) | ||
Issuance of Class A Stock (in shares) | 22,312 | |||
Issuance of Class A Stock | ||||
Balance (in shares) at Mar. 31, 2019 | 3,410,936 | |||
Balance at Mar. 31, 2019 | $ 34 | $ 4,101 | $ 8,936 | $ 13,071 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 2,281 | $ 1,996 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation | 1,838 | 1,735 |
Amortization | 79 | 84 |
Amortization of loan costs | 117 | 121 |
Non-cash lease amortization | 92 | |
Provision for uncollectible accounts receivable | 43 | 85 |
Stock-based compensation | 71 | 71 |
Changes in operating assets and liabilities | ||
Accounts receivable | (187) | 257 |
Materials and supplies | (834) | (309) |
Prepaid expenses and other assets | (71) | 1,683 |
Accounts payable and accrued expenses | 380 | (324) |
Advance billings and payments | (93) | (88) |
Other liabilities | (86) | 1 |
Net cash from operating activities | 3,630 | 5,312 |
Cash flows used in investing activities: | ||
Acquisition and construction of property and equipment | (1,533) | (1,175) |
Net cash used in investing activities | (1,533) | (1,175) |
Cash flows used in financing activities: | ||
Loan origination costs | (10) | (37) |
Principal repayment of long-term notes payable | (1,087) | (1,087) |
Interest rate cap | 4 | (34) |
Retirement of CoBank equity | 119 | |
Tax withholdings paid on behalf of employees for restricted stock units | (183) | (380) |
Net cash used in financing activities | (1,276) | (1,419) |
Net increase in cash and cash equivalents | 821 | 2,718 |
Cash and cash equivalents, beginning of period | 4,657 | 3,570 |
Cash and cash equivalents, end of period | 5,478 | 6,288 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 1,238 | 1,337 |
Income taxes refund | $ (1,000) |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Financial Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Nature of Operations [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 and its wholly owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC; 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 March 31, 2019, not may December 31, 2019, The condensed consolidated financial statements and notes included in this Quarterly Report on Form 10 10 December 31, 2018. December 31, 2018, 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 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. March 2019, 2019 01, Codification Improvements. not 250, 2016 02, not not not 2016 02. not two 2018 11; not $1,073,919 no 2016 02 three March 31, 2019. 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 December 31, 2017, not 118 2018. not 2017 In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 2017 09, December 15, 2018, no 2014 09. not Recent Accounting Pronouncements During 2018, 2018 01 2018 15 2019, 2019 01 2019 03. 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, 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 2 - Notes Payable
Note 2 - Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 2. Notes Payable Notes payable consists of the following (in thousands, except percentages) as of: March 3 1, December 31, Current Long-term 201 9 201 8 Loan with CoBank, ACB (the “Credit Facility”); variable interest rate of 6.75% at March 31, 2019, interest is monthly, paid in arrears on the last business day of each month. The Credit Facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due November 3, 2022. $ 4,350 $ 69,125 $ 73,475 $ 74,562 Debt issuance cost (441 ) (1,003 ) (1,444 ) (1,551 ) Notes payable, net of debt issuance cost $ 3,909 $ 68,122 $ 72,031 $ 73,011 Associated with the Credit Facility, the Company has $2.1 $117 $121 three March 31, 2019, 2018, The revolving credit facility associated with the Company’s Credit Facility had a maximum borrowing capacity of $5.0 March 31, 2019. November 3, 2022. no March 31, 2019. 0.50% 0.50% 0.38% October 22, 2018. $5 $6 three March 31, 2019, 2018, Maturities of notes payable for the next five no 2019 (remaining) $ 3,263 2020 4,350 2021 4,350 2022 61,512 2023 — Total $ 73,475 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 March 31, 2019, |
Note 3 - Income Tax
Note 3 - Income Tax | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 3. Income Tax As of March 31, 2019, December 31, 2018, $0 $43 no March 31, 2019, December 31, 2018. March 31, 2019, no The effective income tax rate as of March 31, 2019, December 31, 2018, 23.7% 22.5%, |
Note 4 - Net Income Per Common
Note 4 - Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 201 9 2018 Weighted average number of common shares outstanding - basic 3,410,936 3,388,624 Effect of dilutive securities 20,293 31,557 Weighted average number of common shares and potential common shares - diluted 3,431,229 3,420,181 Net income $ 2,281 $ 1,996 Net income per common share - basic $ 0.67 $ 0.59 Net income per common share - diluted $ 0.66 $ 0.58 |
Note 5 - Revenue Streams and Co
Note 5 - Revenue Streams and Concentrations | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 March 31, 2018 Local services $ 5,135 $ 5,489 Network access 5,163 5,234 Internet 3,657 3,896 Transport services 996 1,191 Video and security 649 740 Managed services 155 176 Total revenues $ 15,755 $ 16,726 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 March 31, 2019 March 31, 2018 Local services $ 5,135 $ 5,489 Network access 1,112 1,234 Internet 3,657 3,896 Transport services 958 1,153 Video and security 649 740 Managed services 155 176 Total revenues generated from customers $ 11,666 $ 12,688 The following table summarizes the revenue generated from contracts with customers among each revenue stream as of March 31, 2019 ( Three Months Ended March 31, 2019 % In-Scope % Total Month to month (“MTM”) customers $ 7,139 62.0 % 45.3 % Competitive local exchange carrier (“CLEC”) business customers 3,260 28.4 20.7 Network access 649 5.6 4.1 Total revenue streams 11,048 96.0 70.1 Global access* 463 4.0 2.9 Total revenue from contracts with customers 11,511 100.0 % 73.0 Managed services** 155 n/a 1.0 Total revenue generated from customers 11,666 n/a 74.0 Indefeasible rights-of-use agreements** 38 n/a 0.3 Network access** 4,051 n/a 25.7 Total revenues $ 15,755 100.0 % *Fixed fees charged to MTM customers and CLEC business customers. ** Revenue generated from sources not 2014 09. The following table summarizes the revenue generated from contracts with customers among each revenue stream as of March 31, 2018 ( Three Months Ended March 31, 2018 % In-Scope % Total MTM customers $ 7,682 61.4 % 45.9 % CLEC business customers 3,596 28.7 21.5 Network access 724 5.8 4.4 Total revenue streams 12,002 95.9 71.8 Global access* 510 4.1 3.0 Total revenue from contracts with customers 12,512 100.0 % 74.8 Managed services** 176 n/a 1.1 Total revenue generated from customers 12,688 n/a 75.9 Indefeasible rights-of-use agreements** 38 n/a 0.2 Network access** 4,000 n/a 23.9 Total revenues $ 16,726 100.0 % *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 March 31, 2019, $8.2 March 31, 2019, $1.3 $6.8 2 5 not one The deferred revenue balance as of December 31, 2018, $3.8 $1.4 three March 31, 2019, March 31, 2019, 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 23.4% 21.7% three March 31, 2019, 2018, |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 6. Commitments and Contingencies From time to time, the Company may may none |
Note 7 - Leases
Note 7 - Leases | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 7. Leases ASU 2016 02 1, Organization and Basis of Financial Reporting – Recently Adopted Accounting Pronouncements not not not 2016 02. not two 2018 11; not January 1, 2019, $1,073,919 no In consideration of whether an agreement contains a lease as defined under ASU 2016 02, three three 2016 02. In calculating the lease liability, the Company considered the lease term in which the Company would include any periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option. The Company evaluated factors that might create an economic incentive to exercise options to extend, including contract, asset, entity and market-based factors. The Company determined that there would be no not A lessee may 12 not In discounting the liability, ASU 2016 02 5% 7% 5 10 6.5% Maturities of lease liabilities as of March 31, 2019 Leased Real Property and Office Facilities 2019 (remaining) $ 293 2020 267 2021 170 2022 174 2023 166 Thereafter 43 Total lease payments $ 1,113 Less: Interest (132 ) Present value of lease liabilities $ 981 Supplemental cash flow information related to operating leases was as follows (in thousands, except years and percentages): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurment of lease liabilities: Operating cash outflow from operating leases (109 ) Weighted-average remaining lease term - operating leases (in years) 4.0 Weighted-average discount rate - operating leases 6.5 % |
Note 8 - Stock Plans
Note 8 - Stock Plans | 3 Months Ended |
Mar. 31, 2019 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 8. Stock Plans The Company has previously granted RSUs underlying 401,111 one three 401,111 334,799 December 31, 2018. three March 31, 2019, no no The following table summarizes RSU activity as of March 31, 2019: RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 66,312 $ 9.06 Granted — $ — Vested (34,202 ) $ 5.09 Forfeited or cancelled (11,817 ) $ 13.30 Outstanding at March 31, 2019 20,293 $ 13.30 Stock-based compensation expense related to RSUs was $50 $71 three March 31, 2019, 2018, no 2014 As of March 31, 2019, $216 2021. 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 March 31, 2019: ISOs and NQ Stock Options Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 50,000 $ 16.97 Granted — $ — Vested — $ — Forfeited or cancelled — $ — Outstanding at March 31, 2019 50,000 $ 16.97 Stock-based compensation expense related to ISOs and NQ stock options was $21 three March 31, 2019. As of March 31, 2019, $394 2023. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 and its wholly owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC; 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 March 31, 2019, not may December 31, 2019, The condensed consolidated financial statements and notes included in this Quarterly Report on Form 10 10 December 31, 2018. December 31, 2018, |
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 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. March 2019, 2019 01, Codification Improvements. not 250, 2016 02, not not not 2016 02. not two 2018 11; not $1,073,919 no 2016 02 three March 31, 2019. 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 December 31, 2017, not 118 2018. not 2017 In June 2018, 2018 07, Compensation – Stock Compensation (Topic 718 2017 09, December 15, 2018, no 2014 09. not Recent Accounting Pronouncements During 2018, 2018 01 2018 15 2019, 2019 01 2019 03. 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, 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 2 - Notes Payable (Tables)
Note 2 - Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2019 (remaining) $ 3,263 2020 4,350 2021 4,350 2022 61,512 2023 — Total $ 73,475 |
New Credit Facility [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | March 3 1, December 31, Current Long-term 201 9 201 8 Loan with CoBank, ACB (the “Credit Facility”); variable interest rate of 6.75% at March 31, 2019, interest is monthly, paid in arrears on the last business day of each month. The Credit Facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due November 3, 2022. $ 4,350 $ 69,125 $ 73,475 $ 74,562 Debt issuance cost (441 ) (1,003 ) (1,444 ) (1,551 ) Notes payable, net of debt issuance cost $ 3,909 $ 68,122 $ 72,031 $ 73,011 |
Note 4 - Net Income Per Commo_2
Note 4 - Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 201 9 2018 Weighted average number of common shares outstanding - basic 3,410,936 3,388,624 Effect of dilutive securities 20,293 31,557 Weighted average number of common shares and potential common shares - diluted 3,431,229 3,420,181 Net income $ 2,281 $ 1,996 Net income per common share - basic $ 0.67 $ 0.59 Net income per common share - diluted $ 0.66 $ 0.58 |
Note 5 - Revenue Streams and _2
Note 5 - Revenue Streams and Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2019 March 31, 2018 Local services $ 5,135 $ 5,489 Network access 5,163 5,234 Internet 3,657 3,896 Transport services 996 1,191 Video and security 649 740 Managed services 155 176 Total revenues $ 15,755 $ 16,726 Three Months Ended March 31, 2019 March 31, 2018 Local services $ 5,135 $ 5,489 Network access 1,112 1,234 Internet 3,657 3,896 Transport services 958 1,153 Video and security 649 740 Managed services 155 176 Total revenues generated from customers $ 11,666 $ 12,688 Three Months Ended March 31, 2019 % In-Scope % Total Month to month (“MTM”) customers $ 7,139 62.0 % 45.3 % Competitive local exchange carrier (“CLEC”) business customers 3,260 28.4 20.7 Network access 649 5.6 4.1 Total revenue streams 11,048 96.0 70.1 Global access* 463 4.0 2.9 Total revenue from contracts with customers 11,511 100.0 % 73.0 Managed services** 155 n/a 1.0 Total revenue generated from customers 11,666 n/a 74.0 Indefeasible rights-of-use agreements** 38 n/a 0.3 Network access** 4,051 n/a 25.7 Total revenues $ 15,755 100.0 % Three Months Ended March 31, 2018 % In-Scope % Total MTM customers $ 7,682 61.4 % 45.9 % CLEC business customers 3,596 28.7 21.5 Network access 724 5.8 4.4 Total revenue streams 12,002 95.9 71.8 Global access* 510 4.1 3.0 Total revenue from contracts with customers 12,512 100.0 % 74.8 Managed services** 176 n/a 1.1 Total revenue generated from customers 12,688 n/a 75.9 Indefeasible rights-of-use agreements** 38 n/a 0.2 Network access** 4,000 n/a 23.9 Total revenues $ 16,726 100.0 % |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Leased Real Property and Office Facilities 2019 (remaining) $ 293 2020 267 2021 170 2022 174 2023 166 Thereafter 43 Total lease payments $ 1,113 Less: Interest (132 ) Present value of lease liabilities $ 981 |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2019 Cash paid for amounts included in the measurment of lease liabilities: Operating cash outflow from operating leases (109 ) Weighted-average remaining lease term - operating leases (in years) 4.0 Weighted-average discount rate - operating leases 6.5 % |
Note 8 - Stock Plans (Tables)
Note 8 - Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 66,312 $ 9.06 Granted — $ — Vested (34,202 ) $ 5.09 Forfeited or cancelled (11,817 ) $ 13.30 Outstanding at March 31, 2019 20,293 $ 13.30 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | ISOs and NQ Stock Options Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 50,000 $ 16.97 Granted — $ — Vested — $ — Forfeited or cancelled — $ — Outstanding at March 31, 2019 50,000 $ 16.97 |
Note 1 - Organization and Bas_2
Note 1 - Organization and Basis of Financial Reporting (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Lease, Liability, Total | $ 981,000 | $ 1,073,919 | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 9,300,000 | |||
Operating Lease, Right-of-Use Asset | $ 981,000 | $ 1,073,919 |
Note 2 - Notes Payable (Details
Note 2 - Notes Payable (Details Textual) - USD ($) $ in Thousands | Oct. 22, 2018 | Nov. 02, 2017 | Mar. 31, 2019 | Mar. 31, 2018 |
Amortization of Debt Issuance Costs | $ 117 | $ 121 | ||
Debt Issuance Costs, Current, Net, Total | 2,100 | |||
New Credit Facility [Member] | ||||
Debt Issuance Costs, Gross | 2,100 | |||
Amortization of Debt Issuance Costs | 117 | 121 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.38% | 0.50% | ||
Line of Credit Facility, Commitment Fee Amount | 5 | $ 6 | ||
Debt Issuance Costs, Current, Net, Total | 441 | |||
Previous Credit Facility [Member] | ||||
Long-term Line of Credit, Total | $ 0 |
Note 2 - Notes Payable - New Cr
Note 2 - Notes Payable - New Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt issuance cost, current | $ (2,100) | |
Notes payable, net of debt issuance cost, current | 3,909 | $ 3,904 |
Notes payable, net of debt issuance cost, long-term | 68,122 | 69,107 |
Notes payable, net of debt issuance cost | 73,475 | |
New Credit Facility [Member] | ||
Notes payable, current | 4,350 | |
Notes payable, long-term | 69,125 | |
Notes payable, face amount | 73,475 | 74,562 |
Debt issuance cost, current | (441) | |
Debt issuance cost, long-term | (1,003) | |
Debt issuance cost | (1,444) | (1,551) |
Notes payable, net of debt issuance cost, current | 3,909 | |
Notes payable, net of debt issuance cost, long-term | 68,122 | |
Notes payable, net of debt issuance cost | $ 72,031 | $ 73,011 |
Note 2 - Notes Payable - New _2
Note 2 - Notes Payable - New Credit Facility (Details) (Parentheticals) | Mar. 31, 2019 |
New Credit Facility [Member] | |
Notes payable, interest rate | 6.75% |
Note 2 - Notes Payable - Maturi
Note 2 - Notes Payable - Maturities of Notes Payable (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2019 (remaining) | $ 3,263 |
2020 | 4,350 |
2021 | 4,350 |
2022 | 61,512 |
2023 | |
Total | $ 73,475 |
Note 3 - Income Tax (Details Te
Note 3 - Income Tax (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 23.70% | 22.50% |
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 | $ 43,000 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted average number of common shares outstanding - basic (in shares) | 3,410,936 | 3,388,624 |
Effect of dilutive securities (in shares) | 20,293 | 31,557 |
Weighted average number of common shares and potential common shares - diluted (in shares) | 3,431,229 | 3,420,181 |
Net income | $ 2,281 | $ 1,996 |
Net income per common share - basic (in dollars per share) | $ 0.67 | $ 0.59 |
Net income per common share - diluted (in dollars per share) | $ 0.66 | $ 0.58 |
Note 5 - Revenue Streams and _3
Note 5 - Revenue Streams and Concentrations (Details Textual) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Amount | $ 8.2 | ||
Contract with Customer, Liability, Total | $ 3.8 | ||
Contract with Customer, Liability, Revenue Recognized | $ 1.4 | ||
Concentration Risk, Percentage | 100.00% | 100.00% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | National Exchange Carrier Association [Member] | |||
Concentration Risk, Percentage | 23.40% | 21.70% | |
Short-term Contract with Customer [Member] | |||
Revenue, Remaining Performance Obligation, Amount | $ 1.3 | ||
Long-term Contract with Customer [Member] | |||
Revenue, Remaining Performance Obligation, Amount | $ 6.8 | ||
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 5 - Revenue Streams and _4
Note 5 - Revenue Streams and Concentrations - Revenue Streams (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues | $ 15,755 | $ 16,726 | |
Revenues, percentage | 100.00% | 100.00% | |
Month-to-Month Customers [Member] | |||
Revenues, within scope of ASU 2014-09 | $ 7,139 | $ 7,682 | |
Revenues, percentage within scope of ASU 2014-09 | 62.00% | 61.40% | |
Month-to-Month Customers [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | 45.30% | 45.90% | |
Competitive Local Exchange Carrier Business Customers [Member] | |||
Revenues, within scope of ASU 2014-09 | $ 3,260 | $ 3,596 | |
Revenues, percentage within scope of ASU 2014-09 | 28.40% | 28.70% | |
Competitive Local Exchange Carrier Business Customers [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | 20.70% | 21.50% | |
Network Access Customers [member] | |||
Revenues, within scope of ASU 2014-09 | $ 649 | $ 724 | |
Revenues, percentage within scope of ASU 2014-09 | 5.60% | 5.80% | |
Network Access Customers [member] | Revenue Benchmark [Member] | |||
Revenues, percentage | 4.10% | 4.40% | |
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | |||
Revenues, within scope of ASU 2014-09 | $ 11,048 | $ 12,002 | |
Revenues, percentage within scope of ASU 2014-09 | 96.00% | 95.90% | |
Month-to-Month, Competitive Local Exchange Carrier Business, and Network Access Customers [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | 70.10% | 71.80% | |
Global Access Customers [Member] | |||
Revenues, within scope of ASU 2014-09 | [1] | $ 463 | $ 510 |
Revenues, percentage within scope of ASU 2014-09 | [1] | 4.00% | 4.10% |
Global Access Customers [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | [1] | 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 | $ 11,511 | $ 12,512 | |
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] | Revenue Benchmark [Member] | |||
Revenues, percentage | 73.00% | 74.80% | |
Managed Services [Member] | |||
Revenues | [2] | $ 155 | $ 176 |
Managed Services [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | [2] | 1.00% | 1.10% |
Sales Channel, Directly to Consumer [Member] | |||
Revenues | $ 11,666 | $ 12,688 | |
Sales Channel, Directly to Consumer [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | 74.00% | 75.90% | |
Local services [Member] | |||
Revenues | $ 5,135 | $ 5,489 | |
Local services [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 5,135 | 5,489 | |
Network Access [Member] | |||
Revenues | 5,163 | 5,234 | |
Network Access [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 1,112 | 1,234 | |
Internet [Member] | |||
Revenues | 3,657 | 3,896 | |
Internet [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 3,657 | 3,896 | |
Transport Services [Member] | |||
Revenues | 996 | 1,191 | |
Transport Services [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 958 | 1,153 | |
Video and Security [Member] | |||
Revenues | 649 | 740 | |
Video and Security [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 649 | 740 | |
Management Service [Member] | |||
Revenues | 155 | 176 | |
Management Service [Member] | Sales Channel, Directly to Consumer [Member] | |||
Revenues | 155 | 176 | |
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | |||
Revenues | [2] | $ 38 | $ 38 |
Indefeasible Rights-Of-Use Agreements, Outside of ASU 2014-09 Scope [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | [2] | 0.30% | 0.20% |
Network Access, Outside of ASU 2014-09 Scope [Member] | |||
Revenues | [2] | $ 4,051 | $ 4,000 |
Network Access, Outside of ASU 2014-09 Scope [Member] | Revenue Benchmark [Member] | |||
Revenues, percentage | [2] | 25.70% | 23.90% |
[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 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Operating Lease, Liability, Total | $ 981,000 | $ 1,073,919 | |
Operating Lease, Right-of-Use Asset | $ 981,000 | $ 1,073,919 | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.50% | ||
Minimum [Member] | |||
Commercial Borrowing Rate | 5.00% | ||
Loan Collateralized by Real Estate, Term | 5 years | ||
Maximum [Member] | |||
Commercial Borrowing Rate | 7.00% | ||
Loan Collateralized by Real Estate, Term | 10 years |
Note 7 - Leases - Undiscounted
Note 7 - Leases - Undiscounted and Discounted Cash Flows for Leases (Details) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 |
Undiscounted cash flows, 2019 (remaining) | $ 293,000 | |
Undiscounted cash flows, 2020 | 267,000 | |
Undiscounted cash flows, 2021 | 170,000 | |
Undiscounted cash flows, 2022 | 174,000 | |
Undiscounted cash flows, 2023 | 166,000 | |
Undiscounted cash flows, thereafter | 43,000 | |
Total lease payments | 1,113,000 | |
Less: Interest | (132,000) | |
Present value of lease liabilities | $ 981,000 | $ 1,073,919 |
Note 7 - Leases - Lease Informa
Note 7 - Leases - Lease Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating cash outflow from operating leases | $ (109) |
Weighted-average remaining lease term - operating leases (in years) (Year) | 4 years |
Weighted-average discount rate - operating leases | 6.50% |
Note 8 - Stock Plans (Details T
Note 8 - Stock Plans (Details Textual) - USD ($) $ in Thousands | Oct. 15, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
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 | 0 | 401,111 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested or Cancelled | 334,799 | |||
Share-based Payment Arrangement, Amount Capitalized | $ 0 | $ 0 | ||
Share-based Payment Arrangement, Expense | 50 | $ 71 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 216 | |||
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 | |||
Share-based Payment Arrangement, Expense | 21 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 394 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross |
Note 8 - Stock Plans - Summary
Note 8 - Stock Plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restricted stock units outstanding (in shares) | 66,312 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 9.06 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 401,111 |
Granted, weighted average grant date fair value (in dollars per share) | ||
Restricted stock units vested (in shares) | (34,202) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 5.09 | |
Restricted stock units forfeited or cancelled (in shares) | (11,817) | |
Forfeited or cancelled, weighted average grant date fair value (in dollars per share) | $ 13.30 | |
Restricted stock units outstanding (in shares) | 20,293 | 66,312 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 13.30 | $ 9.06 |
Note 8 - Stock Plans - Summar_2
Note 8 - Stock Plans - Summary of Stock Option Activity (Details) - Incentive and Non-Qualified Stock Options [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Stock options outstanding (in shares) | shares | 50,000 |
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | |
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 |