Otelco (OTEL) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 08, 2014	Nov. 08, 2014
		Common Class A [Member]	Common Class B [Member]
Document Information [Line Items]	'	'	'
Entity Registrant Name	'OTELCO INC.	'	'
Document Type	'10-Q	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Common Stock, Shares Outstanding	'	2,870,948	232,780
Amendment Flag	'false	'	'
Entity Central Index Key	'0001288359	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Period End Date	30-Sep-14	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q3	'	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$5,812	$9,916
Accounts receivable:	'	'
Due from subscribers, net of allowance for doubtful accounts of $274 and $236, respectively	3,471	3,730
Unbilled receivables	1,718	1,906
Other	1,979	2,050
Materials and supplies	1,815	1,654
Prepaid expenses	1,868	1,863
Deferred income taxes	707	905
Total current assets	17,370	22,024
Property and equipment, net	51,951	54,462
Goodwill	44,976	44,957
Intangible assets, net	3,445	4,074
Investments	1,876	1,895
Deferred financing costs, net	1,390	2,097
Deferred income taxes	1,785	1,606
Other assets	534	563
Total assets	123,327	131,678
Current liabilities	'	'
Accounts payable	1,068	1,552
Accrued expenses	6,422	5,141
Advance billings and payments	1,397	1,422
Deferred income taxes	620	469
Customer deposits	73	84
Current maturity of long-term notes payable	7,172	7,441
Total current liabilities	16,752	16,109
Deferred income taxes	24,133	23,181
Advance billings and payments	694	736
Other liabilities	117	139
Long-term notes payable, less current maturities	107,221	121,192
Total liabilities	148,917	161,357
Stockholders' deficit	'	'
Additional paid in capital	2,876	2,876
Retained deficit	-28,497	-32,586
Total stockholders' deficit	-25,590	-29,679
Total liabilities and stockholders' deficit	123,327	131,678
Old Common Class A [Member]	'	'
Stockholders' deficit	'	'
Common Stock	29	29
Common Class B [Member]	'	'
Stockholders' deficit	'	'
Common Stock	$2	$2

Consolidated_Balance_Sheets_Un1

Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Allowance for doubtful accounts (in Dollars)	$236	$274
Old Common Class A [Member]	'	'
Common stock, par value (in Dollars per share)	$0.01	$0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	2,870,948	2,870,948
Common stock, shares outstanding	2,870,948	2,870,948
Common Class B [Member]	'	'
Common stock, par value (in Dollars per share)	$0.01	$0.01
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	232,780	232,780
Common stock, shares outstanding	232,780	232,780

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended			9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013		Sep. 30, 2014	Sep. 30, 2013
Revenues	$18,421	$18,980		$55,692	$59,634
Operating expenses	'	'		'	'
Cost of services	8,763	9,065		26,760	27,805
Selling, general and administrative expenses	2,552	2,771		7,823	7,813
Depreciation and amortization	2,481	2,843		8,073	9,706
Total operating expenses	13,796	14,679		42,656	45,324
Income from operations	4,625	4,301		13,036	14,310
Other income (expense)	'	'		'	'
Interest expense	-2,167	-2,470		-6,733	-10,248
Other income (expense), net	-306	-6		343	255
Total other expenses	-2,473	-2,476		-6,390	-9,993
Income before reorganization items and income tax	2,152	1,825		6,646	4,317
Reorganization items	'	-940		'	109,313
Income before income tax	2,152	885		6,646	113,630
Income tax benefit (expense)	-765	587		-2,557	-4,284
Net income	$1,387	$1,472	[1]	$4,089	$109,346	[1]
Weighted average number of common shares outstanding:	'	'		'	'
Basic (in Shares)	3,103,728	3,103,728	[1]	3,103,728	2,859,699	[1]
Diluted (in Shares)	3,181,280	3,103,728	[1]	3,129,874	2,859,699	[1]
Basic net income per common share (in Dollars per share)	$0.45	$0.47	[1]	$1.32	$38.24	[1]
Diluted net income per common share (in Dollars per share)	$0.44	'	[1]	$1.31	'	[1]
[1]	Adjusted to reflect the cancellation of old common stock and the issuance of new Class A common stock in exchange for Notes as part of the Plan

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$4,089	$109,346
Adjustments to reconcile net income to cash flows provided by operating activities:	'	'
Depreciation	6,793	7,166
Amortization	1,280	2,540
Amortization of loan costs	707	827
Amortization of notes payable premium	'	-31
Provision for deferred income taxes	1,122	4,154
Provision for uncollectible accounts receivable	360	304
Stock-based compensation	383	'
Changes in operating assets and liabilities	'	'
Accounts receivable	158	2,768
Materials and supplies	-161	51
Prepaid expenses and other assets	24	62
Accounts payable and accrued expenses	414	480
Advance billings and payments	-67	-140
Other liabilities	-33	-331
Reorganization adjustments:	'	'
Non-cash reorganization income	'	-114,210
Net cash provided by operating activities	15,069	12,986
Cash flows used in investing activities:	'	'
Acquisition and construction of property and equipment	-4,491	-3,133
Proceeds from sale of property and equipment	58	'
Cash paid for the purchase of Reliable Networks net of cash acquired	-500	'
Net cash used in investing activities	-4,933	-3,133
Cash flows used in financing activities:	'	'
Principal repayment of long-term notes payable	-14,240	-30,366
Loan origination costs	'	-1,653
Net cash used in financing activities	-14,240	-32,019
Net decrease in cash and cash equivalents	-4,104	-22,166
Cash and cash equivalents, beginning of period	9,916	32,516
Cash and cash equivalents, end of period	5,812	10,350
Supplemental disclosures of cash flow information:	'	'
Interest paid	6,027	6,395
Income taxes paid	721	163
Loan fees paid via issuance of Class B common stock	'	2,772
Cancellation of Class A common stock	'	132
Issuance of Class A common stock	'	$29

Note_1_Organization_and_Basis_

Note 1 - Organization and Basis of Financial Reporting	9 Months Ended
	Sep. 30, 2014
Disclosure Text Block [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	1	Organization and Basis of Financial Reporting
	Basis of Presentation and Principles of Consolidation
	The unaudited 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: Otelco Telecommunications LLC (“OTC”); Otelco Telephone LLC (“OTP”); Hopper Telecommunications LLC (“HTC”); Brindlee Mountain Telephone LLC (“BMTC”); Blountsville Telephone LLC (“BTC”); Otelco Mid-Missouri LLC (“MMT”) and its wholly owned subsidiary I-Land Internet Services LLC; Mid-Maine Telecom LLC (“MMTI”); Mid-Maine TelPlus LLC (“MMTP”); Granby Telephone LLC (“GTT”); War Telephone LLC (“WT”); Pine Tree Telephone LLC (“PTT”); Saco River Telephone LLC (“SRT”); Shoreham Telephone LLC (“ST”); and CRC Communications LLC (“CRC”).
	On August 31, 2013, the Company’s former subsidiary, Communications Design Acquisition LLC, was merged with and into CRC, with CRC being the surviving entity in the merger.
	The accompanying unaudited 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 months and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other period.
	The consolidated financial statements and notes included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The interim consolidated financial information herein is unaudited. The information reflects all adjustments and bankruptcy transactions, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods included in the report.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also provides a more robust framework for revenue issues and improves comparability of revenue recognition practices across industries. This ASU was the product of a joint project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption not permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017.
	In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Account for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The amendments in this ASU provide explicit guidance on whether to treat a performance target as a performance condition that affects vesting or as a non-vesting condition that affects the grant-date fair value of an award. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.
	In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update should help reduce the diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.
	Reorganization
	On March 24, 2013, the Company and each of its then direct and indirect subsidiaries filed voluntary petitions for reorganization (the “Reorganization Cases”) under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) in order to effectuate their prepackaged Chapter 11 plan of reorganization (the “Plan”). On May 6, 2013, the Bankruptcy Court entered an order confirming the Plan. On May 24, 2013 (the “Effective Date”), the Company substantially consummated its reorganization through a series of transactions contemplated by the Plan, and the Plan became effective pursuant to its terms. On August 22, 2013, the Bankruptcy Court issued a final decree closing the Reorganization Cases.
	When the Plan became effective, the following transactions occurred, among other things:
		●	the $162.0 million of outstanding principal term loan obligations under the Company’s credit facility was reduced to $133.3 million through a cash payment of $28.7 million;
		●	the maturity of the outstanding principal term loan obligations and any revolving loan obligations under the Company’s credit facility was extended to April 30, 2016;
		●	the holders of the outstanding principal term loan obligations under the Company’s credit facility, which outstanding obligations totaled $162.0 million, received their pro rata share of the Company’s new Class B common stock, which new Class B common stock represented 7.5% of the Company’s total economic and voting interests immediately following the effectiveness of the Plan;
		●	certain revolving loan commitments under the Company’s credit facility were reinstated, with availability of up to $5 million;
		●	the Company’s outstanding senior subordinated notes (“Notes”), which had an aggregate principal amount, including premium, of $109.0 million, were cancelled and the holders of outstanding Notes received their pro rata share of the Company’s new Class A common stock, which new Class A common stock represented 92.5% of the Company’s total economic and voting interests immediately following the effectiveness of the Plan; and
		●	the outstanding shares of the Company’s old common stock were cancelled.
	As of the Effective Date, a total of 2,870,948 shares of the Company’s new Class A common stock and 232,780 shares of the Company’s new Class B common stock were issued and outstanding, and 232,780 shares of the Company’s new Class A common stock were reserved for the future issuance upon the conversion of the Company’s new Class B common stock.
	The Company’s emergence from bankruptcy did not qualify for fresh-start accounting in accordance with Accounting Standards Codification 852,  Reorganization, as immediately following the effectiveness of the Plan, more than 50% of the Company’s new Class A common stock was held by persons who also held the Company’s old common stock.
	Reclassifications
	Certain items in prior year’s consolidated financial statements have been reclassified to conform with 2014 presentation.

Note_2_Notes_Payable

Note 2 - Notes Payable	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	2	Notes Payable
	The Company’s credit facility has been amended and restated on three occasions most recently on May 24, 2013, in connection with the effectiveness of the Plan. A summary of the terms of the Plan is included in note 1, Organization and Basis of Financial Reporting− Reorganization, above. All of the outstanding Notes were cancelled on the Effective Date, pursuant to the Plan. See note 1, Organization and Basis of Financial Reporting - Reorganization, above.
	Notes payable consists of the following (in thousands, except percentages):
			December 31,			September 30,
			2013			2014
	Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2013 and September 30, 2014. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016.		$	128,633		$	114,393
	Less: current portion			(7,441	)		(7,172	)
	Long-term notes payable		$	121,192		$	107,221
	Associated with these notes payable, the Company has capitalized and amortized deferred financing cost using the effective interest method. The Company has capitalized $2.7 million in deferred financing cost associated with the credit facility. Amortization expense for the deferred financing cost was $253 thousand and $827 thousand for the three months and nine months ended September 30, 2013, respectively. Amortization expense for the deferred financing cost was $232 thousand and $707 thousand for the three months and nine months ended September 30, 2014, respectively.
	The Company had revolving credit facilities on December 31, 2013 and September 30, 2014 of $5.0 million. The filing of the Reorganization Cases terminated the Company’s revolving loan commitments under it’s credit facility. Upon the Effective Date, the revolving loan commitments were reinstated at $5.0 million. Those commitments have been extended until April 30, 2016. There was no balance outstanding as of December 31, 2013 or September 30, 2014. The Company pays a commitment fee of 0.50% per annum, payable quarterly in arrears, on the unused portion of the revolver loan. The commitment fee expense was $39 thousand and $19 thousand for the nine months ended September 30, 2013 and 2014, respectively.
	Maturities of notes payable for each of the next five years and thereafter are as follows (in thousands):
	2014 (remaining)		$	2,173
	2015			6,665
	2016			105,555
	2017			—
	2018			—
	Thereafter			—
	Total		$	114,393
	The Company’s notes payable agreements are subject to certain financial covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. As of September 30, 2014, the Company was in compliance with all such covenants and restrictions.

Note_3_Acquisition

Note 3 - Acquisition	9 Months Ended
	Sep. 30, 2014
Disclosure Text Block Supplement [Abstract]	'
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	'
	3	Acquisition
	On January 2, 2014 the Company’s wholly-owned subsidiary, CRC, acquired substantially all of the assets of Reliable Networks of Maine, LLC (“Reliable Networks”), a Portland, Maine-based provider of cloud hosting and managed services for companies who rely on mission-critical applications. CRC paid $0.5 million net of cash acquired at the closing of the acquisition. In addition, Company stock will be issued to Reliable Networks over the next three years, contingent on it achieving certain financial objectives and certain other coditions being satisfied. The results of operations from Reliable Networks are included in the Company’s consolidated results of operations beginning January 2, 2014.

Note_4_Income_Tax

Note 4 - Income Tax	9 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	4	Income Tax
	As of September 30, 2014, the Company had no U.S. federal or state net operating loss carryforwards or alternative minimum tax credit carryforwards.  The Company’s U.S. federal and state net operating loss carryforwards available as of December 31, 2013 were $594 thousand and $19.8 million, respectively.  Due to the Company’s emergence from bankruptcy during the 2013 tax year, these net operating losses were reduced to zero on January 1, 2014 according to the tax attribute reduction required under Internal Revenue Code §108(b). Additionally, the alternative minimum tax credit carryforward of $769 thousand that was available as of December 31, 2013 was reduced to zero on January 1, 2014 according to the tax attribute reduction required under Internal Revenue Code §108(b). The Company establishes valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized.  As of September 30, 2014, the Company had no valuation allowance recorded.  The valuation allowance recorded during 2013 was reversed on January 1, 2014 when the related tax attributes were reduced to zero.  During 2013, the Company recorded a valuation allowance of $0.5 million related to the deferred tax asset associated with the federal and state loss carryforwards and a valuation allowance of $0.8 million related to the deferred tax asset associated with the alternative minimum tax credit carryforwards which were not utilized during the tax year ended December 31, 2013.
	The effective income tax rate as of December 31, 2013 and September 30, 2014 was 5.5% and 38.5%, respectively.  The cancellation of debt income in 2013 is non-taxable, and is the primary difference between the 35% federal statutory rate and the effective tax rate for the twelve months ended December 31, 2013.

Note_5_Net_Income_Per_Common_S

Note 5 - Net Income Per Common Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	5	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 the Company’s basic and diluted income per common share calculation is as follows (weighted average number of common shares outstanding in whole numbers and net income in thousands):
			Three Months				Nine Months
			Ended September 30,				Ended September 30,
				2013(1)		2014		2013(1)		2014
	Weighted average number of common shares outstanding - basic			3,103,728		3,103,728		2,859,699		3,103,728
	Effect of dilutive securities			—		77,552		—		26,146
	Weighted average number of common shares and potential common shares - diluted			3,103,728		3,181,280		2,859,699		3,129,874
	Net income available to common stockholders		$	1,472	$	1,387	$	109,346	$	4,089
	Net income per common share - basic		$	0.47	$	0.45	$	38.24	$	1.32
	Net income per common share - diluted		$	—	$	0.44	$	—	$	1.31
	(1)  Adjusted to reflect the cancellation of old common stock and the issuance of new Class A common stock in exchange for Notes as part of the Plan

Note_6_Stock_Plan

Note 6 - Stock Plan	9 Months Ended
	Sep. 30, 2014
Disclosure Text Block Supplement [Abstract]	'
Shareholders' Equity and Share-based Payments [Text Block]	'
	6	Stock Plans
	On July 9, 2014, the Company granted an aggregate of 124,167 RSUs under the Otelco Inc. 2014 Stock Incentive Plan. An aggregate of 10,206 RSUs were granted to the Company’s directors (other than Michael D. Weaver, the Company’s Chief Executive Officer), all of which will vest on December 31, 2014. An aggregate of 113,961 RSUs were granted to certain of the Company’s officers which will vest in three equal installments on March 13, 2015, March 14, 2016 and March 13, 2017, subject to the achievement of certain financial objectives. Specifically, the number of shares of Class A common stock to be issued upon the vesting of the RSUs granted to officers of the Company will be determined based on the Company’s performance, with respect to three financial metrics (adjusted earnings before interest, depreciation and amortization, revenues and net debt), against certain targets for the year ending December 31, 2014. Depending on the Company’s performance versus such targets, between zero and an aggregate of 113,961 shares of Class A common stock will be issued upon the vesting of such RSUs.
	In connection with CRC’s purchase of Reliable Networks, the Company agreed to issue shares of Class A common stock to Reliable Networks over the next three years, contingent on Reliable Networks achieving certain financial objectives and certain other conditions being satisfied. Specifically, for each of the years ending December 31, 2014, 2015, and 2016, the Company will issue Reliable Networks between zero and 68,233 shares of Class A common stock, depending on Reliable Networks’ performance versus the applicable financial objectives for such periods and the satisfaction of the other relevant conditions.

Note_7_Revenue_Concentrations

Note 7 - Revenue Concentrations	9 Months Ended
	Sep. 30, 2014
Risks and Uncertainties [Abstract]	'
Concentration Risk Disclosure [Text Block]	'
	7	Revenue Concentrations
	Revenues for interstate access services are based on reimbursement of costs and an allowed rate of return. Revenues of this nature are received from the National Exchange Carrier Association in the form of monthly settlements. Such revenues amounted to 11.8% and 15.0% of the Company’s total revenues for the nine months ended September 30, 2013 and 2014, respectively.

Note_8_Commitments_and_Conting

Note 8 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	8	Commitments and Contingencies
	From time to time, we may be involved in various claims, legal actions and regulatory proceedings incidental to and in the ordinary course of business, including administrative hearings of the Alabama Public Service Commission, the Maine Public Utilities Commission, the Massachusetts Department of Telecommunications and Cable, the Missouri Public Service Commission, the New Hampshire Public Utilities Commission, the Vermont Public Service Board and the West Virginia Public Service Commission, relating primarily to rate making. Currently, none of the legal proceedings are expected to have a material adverse effect on the Company’s business.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Basis of Accounting, Policy [Policy Text Block]	'
	Basis of Presentation and Principles of Consolidation
	The unaudited 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: Otelco Telecommunications LLC (“OTC”); Otelco Telephone LLC (“OTP”); Hopper Telecommunications LLC (“HTC”); Brindlee Mountain Telephone LLC (“BMTC”); Blountsville Telephone LLC (“BTC”); Otelco Mid-Missouri LLC (“MMT”) and its wholly owned subsidiary I-Land Internet Services LLC; Mid-Maine Telecom LLC (“MMTI”); Mid-Maine TelPlus LLC (“MMTP”); Granby Telephone LLC (“GTT”); War Telephone LLC (“WT”); Pine Tree Telephone LLC (“PTT”); Saco River Telephone LLC (“SRT”); Shoreham Telephone LLC (“ST”); and CRC Communications LLC (“CRC”).
	On August 31, 2013, the Company’s former subsidiary, Communications Design Acquisition LLC, was merged with and into CRC, with CRC being the surviving entity in the merger.
	The accompanying unaudited 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 months and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or any other period.
	The consolidated financial statements and notes included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The interim consolidated financial information herein is unaudited. The information reflects all adjustments and bankruptcy transactions, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods included in the report.
New Accounting Pronouncements, Policy [Policy Text Block]	'
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also provides a more robust framework for revenue issues and improves comparability of revenue recognition practices across industries. This ASU was the product of a joint project between the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption not permitted. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017.
	In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Account for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. The amendments in this ASU provide explicit guidance on whether to treat a performance target as a performance condition that affects vesting or as a non-vesting condition that affects the grant-date fair value of an award. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.
	In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this update should help reduce the diversity in the timing and content of footnote disclosures. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block]	'
	Reorganization
	On March 24, 2013, the Company and each of its then direct and indirect subsidiaries filed voluntary petitions for reorganization (the “Reorganization Cases”) under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) in order to effectuate their prepackaged Chapter 11 plan of reorganization (the “Plan”). On May 6, 2013, the Bankruptcy Court entered an order confirming the Plan. On May 24, 2013 (the “Effective Date”), the Company substantially consummated its reorganization through a series of transactions contemplated by the Plan, and the Plan became effective pursuant to its terms. On August 22, 2013, the Bankruptcy Court issued a final decree closing the Reorganization Cases.
	When the Plan became effective, the following transactions occurred, among other things:
		●	the $162.0 million of outstanding principal term loan obligations under the Company’s credit facility was reduced to $133.3 million through a cash payment of $28.7 million;
		●	the maturity of the outstanding principal term loan obligations and any revolving loan obligations under the Company’s credit facility was extended to April 30, 2016;
		●	the holders of the outstanding principal term loan obligations under the Company’s credit facility, which outstanding obligations totaled $162.0 million, received their pro rata share of the Company’s new Class B common stock, which new Class B common stock represented 7.5% of the Company’s total economic and voting interests immediately following the effectiveness of the Plan;
		●	certain revolving loan commitments under the Company’s credit facility were reinstated, with availability of up to $5 million;
		●	the Company’s outstanding senior subordinated notes (“Notes”), which had an aggregate principal amount, including premium, of $109.0 million, were cancelled and the holders of outstanding Notes received their pro rata share of the Company’s new Class A common stock, which new Class A common stock represented 92.5% of the Company’s total economic and voting interests immediately following the effectiveness of the Plan; and
		●	the outstanding shares of the Company’s old common stock were cancelled.
	As of the Effective Date, a total of 2,870,948 shares of the Company’s new Class A common stock and 232,780 shares of the Company’s new Class B common stock were issued and outstanding, and 232,780 shares of the Company’s new Class A common stock were reserved for the future issuance upon the conversion of the Company’s new Class B common stock.
	The Company’s emergence from bankruptcy did not qualify for fresh-start accounting in accordance with Accounting Standards Codification 852,  Reorganization, as immediately following the effectiveness of the Plan, more than 50% of the Company’s new Class A common stock was held by persons who also held the Company’s old common stock.
Reclassification, Policy [Policy Text Block]	'
	Reclassifications
	Certain items in prior year’s consolidated financial statements have been reclassified to conform with 2014 presentation.

Note_2_Notes_Payable_Tables

Note 2 - Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Schedule of Long-term Debt Instruments [Table Text Block]	'
		December 31,			September 30,
		2013			2014
	Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2013 and September 30, 2014. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016.	$	128,633		$	114,393
	Less: current portion		(7,441	)		(7,172	)
	Long-term notes payable	$	121,192		$	107,221
Schedule of Maturities of Long-term Debt [Table Text Block]	'
	2014 (remaining)	$	2,173
	2015		6,665
	2016		105,555
	2017		—
	2018		—
	Thereafter		—
	Total	$	114,393

Note_5_Net_Income_Per_Common_S1

Note 5 - Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
		Three Months				Nine Months
		Ended September 30,				Ended September 30,
			2013(1)		2014		2013(1)		2014
	Weighted average number of common shares outstanding - basic		3,103,728		3,103,728		2,859,699		3,103,728
	Effect of dilutive securities		—		77,552		—		26,146
	Weighted average number of common shares and potential common shares - diluted		3,103,728		3,181,280		2,859,699		3,129,874
	Net income available to common stockholders	$	1,472	$	1,387	$	109,346	$	4,089
	Net income per common share - basic	$	0.47	$	0.45	$	38.24	$	1.32
	Net income per common share - diluted	$	—	$	0.44	$	—	$	1.31

Note_1_Organization_and_Basis_1

Note 1 - Organization and Basis of Financial Reporting (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Mar. 24, 2013	Sep. 30, 2014	Dec. 31, 2013	Mar. 24, 2013	Mar. 24, 2013	Mar. 24, 2013	Mar. 24, 2013	Mar. 24, 2013
				Common Class B [Member]	Common Class B [Member]	Common Class B [Member]	Common Class A [Member]	Reduced Amount [Member]	Senior Subordinated Notes [Member]	Senior Credit Facility [Member]
								Senior Credit Facility [Member]
Note 1 - Organization and Basis of Financial Reporting (Details) [Line Items]	'	'	'	'	'	'	'	'	'	'
Long-term Debt, Gross	'	'	'	'	'	'	'	'	'	$162,000,000
Long-term Debt	114,393,000	128,633,000	'	'	'	'	'	133,300,000	'	'
Repayments of Long-term Lines of Credit	'	'	'	'	'	'	'	'	'	28,700,000
Percentage of Voting Interests Represented by Class of Common Stock Following the Effectiveness of the Reorganization	'	'	'	'	'	7.50%	92.50%	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	'	'	'	'	'	'	'	'	'	5,000,000
Debt Instrument, Increase (Decrease), Net	'	'	'	'	'	'	'	'	($109,000,000)	'
Common Stock, Shares, Issued	'	'	'	232,780	232,780	232,780	2,870,948	'	'	'
Common Stock, Shares, Outstanding	'	'	'	232,780	232,780	232,780	2,870,948	'	'	'
Common Stock, Capital Shares Reserved for Future Issuance	'	'	'	'	'	'	232,780	'	'	'
Percentage of New Class A Common Stock	'	'	50.00%	'	'	'	'	'	'	'

Note_2_Notes_Payable_Details

Note 2 - Notes Payable (Details) (USD $)	3 Months Ended		9 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Mar. 24, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	24-May-13
					Senior Credit Facility [Member]	Senior Credit Facility [Member]	Revolving Credit Facility [Member]	Revolving Credit Facility [Member]	Revolving Credit Facility [Member]	Revolving Credit Facility [Member]
Note 2 - Notes Payable (Details) [Line Items]	'	'	'	'	'	'	'	'	'	'
Deferred Finance Costs, Gross	'	'	'	'	$2,700,000	'	'	'	'	'
Amortization of Financing Costs	232,000	253,000	707,000	827,000	'	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity	'	'	'	'	'	5,000,000	5,000,000	'	5,000,000	5,000,000
Long-term Line of Credit	'	'	'	'	'	'	0	'	0	'
Line of Credit Facility, Commitment Fee Percentage	'	'	'	'	'	'	'	'	0.50%	'
Line of Credit Facility, Commitment Fee Amount	'	'	'	'	'	'	$19,000	$39,000	'	'

Note_2_Notes_Payable_Details_S

Note 2 - Notes Payable (Details) - Summary of Notes Payable (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Summary of Notes Payable [Abstract]	'	'
Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2013 and September 30, 2014. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016.	$114,393	$128,633
Less: current portion	-7,172	-7,441
Long-term notes payable	$107,221	$121,192

Note_2_Notes_Payable_Details_S1

Note 2 - Notes Payable (Details) - Summary of Notes Payable (Parentheticals)	Sep. 30, 2014	Dec. 31, 2013
Summary of Notes Payable [Abstract]	'	'
Interest rate	6.50%	6.50%

Note_2_Notes_Payable_Details_M

Note 2 - Notes Payable (Details) - Maturities of Notes Payable (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Maturities of Notes Payable [Abstract]	'	'
2014 (remaining)	$2,173	'
2015	6,665	'
2016	105,555	'
2017	0	'
2018	0	'
Thereafter	0	'
Total	$114,393	$128,633

Note_3_Acquisition_Details

Note 3 - Acquisition (Details) (Reliable Networks [Member], USD $)	0 Months Ended
In Millions, unless otherwise specified	Jan. 02, 2014
Reliable Networks [Member]	'
Note 3 - Acquisition (Details) [Line Items]	'
Payments to Acquire Businesses, Gross	$0.50

Note_4_Income_Tax_Details

Note 4 - Income Tax (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Mar. 31, 2014	Jan. 31, 2014
Note 4 - Income Tax (Details) [Line Items]	'	'	'	'
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	$0	$769,000	'	$0
Operating Loss Carryforwards	'	'	'	0
Deferred Tax Assets, Valuation Allowance	0	'	0	'
Effective Income Tax Rate Reconciliation, Percent	38.50%	5.50%	'	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	'	35.00%	'	'
Domestic Tax Authority [Member]	'	'	'	'
Note 4 - Income Tax (Details) [Line Items]	'	'	'	'
Operating Loss Carryforwards	0	594,000	'	'
State and Local Jurisdiction [Member]	'	'	'	'
Note 4 - Income Tax (Details) [Line Items]	'	'	'	'
Operating Loss Carryforwards	0	19,800,000	'	'
Capital Loss Carryforward [Member]	'	'	'	'
Note 4 - Income Tax (Details) [Line Items]	'	'	'	'
Deferred Tax Assets, Valuation Allowance	'	500,000	'	'
Alternative Minimum Tax Credit [Member]	'	'	'	'
Note 4 - Income Tax (Details) [Line Items]	'	'	'	'
Deferred Tax Assets, Valuation Allowance	'	$800,000	'	'

Note_5_Net_Income_Per_Common_S2

Note 5 - Net Income Per Common Share (Details) - Reconciliation of Income (Loss) Per Common Share (USD $)	3 Months Ended			9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013		Sep. 30, 2014	Sep. 30, 2013
Reconciliation of Income (Loss) Per Common Share [Abstract]	'	'		'	'
Weighted average number of common shares outstanding - basic	3,103,728	3,103,728	[1]	3,103,728	2,859,699	[1]
Effect of dilutive securities	77,552	'	[1]	26,146	'	[1]
Weighted average number of common shares and potential common shares - diluted	3,181,280	3,103,728	[1]	3,129,874	2,859,699	[1]
Net income available to common stockholders (in Dollars)	$1,387	$1,472	[1]	$4,089	$109,346	[1]
Net income per common share - basic (in Dollars per share)	$0.45	$0.47	[1]	$1.32	$38.24	[1]
Net income per common share - diluted (in Dollars per share)	$0.44	'	[1]	$1.31	'	[1]
[1]	Adjusted to reflect the cancellation of old common stock and the issuance of new Class A common stock in exchange for Notes as part of the Plan

Note_6_Stock_Plan_Details

Note 6 - Stock Plan (Details)

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

0 Months Ended

Dec. 31, 2014

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2016

Dec. 31, 2015

Sep. 30, 2014

Sep. 30, 2014

Mar. 24, 2013

Jul. 09, 2014

Jul. 09, 2014

Jul. 09, 2014

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Scenario, Forecast [Member]

Scenario, Forecast [Member]

Scenario, Forecast [Member]

Scenario, Forecast [Member]

Scenario, Forecast [Member]

Scenario, Forecast [Member]

Minimum [Member]

Maximum [Member]

Directors [Member]

Officers [Member]

2014 Stock Incentive Plan [Member]

Reliable Networks [Member]

Reliable Networks [Member]

Reliable Networks [Member]

Reliable Networks [Member]

Reliable Networks [Member]

Reliable Networks [Member]

2014 Stock Incentive Plan [Member]

2014 Stock Incentive Plan [Member]

2014 Stock Incentive Plan [Member]

2014 Stock Incentive Plan [Member]

Minimum [Member]

Minimum [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Maximum [Member]

Note 6 - Stock Plan (Details) [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period

'

'

'

'

'

'

'

'

'

10,206

113,961

124,167

Common Stock, Capital Shares Reserved for Future Issuance

'

'

'

'

'

'

0

113,961

232,780

'

'

'

Business Acquisition, Equity Interest Issued or Issuable, Number of Shares

0

0

0

68,233

68,233

68,233

'

'

'

'

'

'

Note_7_Revenue_Concentrations_

Note 7 - Revenue Concentrations (Details) (National Exchange Carrier Association [Member], Sales Revenue, Net [Member], Customer Concentration Risk [Member])	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
National Exchange Carrier Association [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]	'	'
Note 7 - Revenue Concentrations (Details) [Line Items]	'	'
Concentration Risk, Percentage	15.00%	11.80%