Otelco (OTEL) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Common Class A [Member]
Entity Common Stock, Shares Outstanding (in shares)		3,006,526
Common Class B [Member]
Entity Common Stock, Shares Outstanding (in shares)		232,780
Entity Registrant Name	OTELCO INC.
Entity Central Index Key	1,288,359
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Common Class A [Member]
Stockholders' deficit
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 2,881,154 and 3,006,526 shares, respectively	$ 30	$ 29
Common Class B [Member]
Stockholders' deficit
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 2,881,154 and 3,006,526 shares, respectively	2	2
Cash and cash equivalents	6,863	5,082
Due from subscribers, net of allowance for doubtful accounts of $229 and $187, respectively	3,526	3,732
Unbilled receivables	1,666	1,675
Other	1,972	1,931
Materials and supplies	2,136	1,915
Prepaid expenses	1,474	3,441
Total current assets	17,637	17,776
Property and equipment, net	50,226	51,237
Goodwill	44,976	44,976
Intangible assets, net	2,700	3,178
Investments	1,858	1,870
Deferred financing costs, net	729	1,161
Other assets	362	471
Total assets	118,488	120,669
Accounts payable	1,049	1,104
Accrued expenses	6,014	5,054
Advance billings and payments	1,409	1,410
Deferred income taxes	53	53
Customer Deposits	74	70
Current maturity of long-term notes payable	105,089	6,665
Total current liabilities	113,688	14,356
Deferred income taxes	24,027	24,027
Advance billings and payments	654	681
Other liabilities	$ 124	142
Long-term notes payable		105,470
Total liabilities	$ 138,493	144,676
Additional paid in capital	3,730	3,519
Retained deficit	(23,767)	(27,557)
Total stockholders' deficit	(20,005)	(24,007)
Total liabilities and stockholders' deficit	$ 118,488	$ 120,669

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
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)	3,006,526	2,881,154
Common stock, outstanding (in shares)	3,006,526	2,881,154
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	250,000	250,000
Common stock, issued (in shares)	232,780	232,780
Common stock, outstanding (in shares)	232,780	232,780
Allowance for doubtful accounts	$ 187	$ 229

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues	$ 17,892	$ 18,488	$ 35,535	$ 37,271
Operating expenses
Cost of services	8,406	8,599	16,663	17,996
Selling, general and administrative expenses	2,457	2,644	5,086	5,272
Depreciation and amortization	2,264	2,807	4,513	5,592
Total operating expenses	13,127	14,050	26,262	28,860
Income from operations	4,765	4,438	9,273	8,411
Other income (expense)
Interest expense	(1,991)	(2,244)	(4,039)	(4,566)
Other income (expense)	(17)	(5)	1,046	649
Total other expenses, net	(2,008)	(2,249)	(2,993)	(3,917)
Income before income tax	2,757	2,189	6,280	4,494
Income tax expense	(1,102)	(881)	(2,490)	(1,792)
Net income	$ 1,655	$ 1,308	$ 3,790	$ 2,702
Weighted average number of common shares outstanding:
Basic (in shares)	3,239,306	3,103,728	3,239,306	3,103,728
Diluted (in shares)	3,285,534	3,103,728	3,283,332	3,103,728
Basic net income per common share (in dollars per share)	$ 0.51	$ 0.42	$ 1.17	$ 0.87
Diluted net income per common share (in dollars per share)	$ 0.50	$ 0.42	$ 1.15	$ 0.87

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 3,790	$ 2,702
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation	3,843	4,681
Amortization	670	911
Amortization of loan costs	447	475
Provision for uncollectible accounts receivable	175	227
Stock-based compensation	211	241
Changes in operating assets and liabilities:
Accounts receivable	(1)	(238)
Material and supplies	(221)	12
Prepaid expenses and other assets	2,076	312
Accounts payable and accrued expenses	905	556
Advance billings and payments	(27)	(34)
Other liabilities	(13)	(26)
Net cash from operating activities	11,855	9,819
Cash flows used in investing activities:
Acquisition and construction of property and equipment	$ (3,013)	(2,913)
Proceeds from sale of property and equipment		58
Purchase of Reliable Networks, net of cash acquired		(500)
Net cash used in investing activities	$ (3,013)	(3,355)
Cash flows used in financing activities:
Principal repayment of long-term notes payable	(7,046)	$ (11,573)
Loan origination costs	(15)
Net cash used in financing activities	(7,061)	$ (11,573)
Net increase (decrease) in cash and cash equivalents	1,781	(5,109)
Cash and cash equivalents, beginning of period	5,082	9,916
Cash and cash equivalents, end of period	6,863	4,807
Supplemental disclosures of cash flow information:
Interest paid	3,591	4,093
Income taxes paid	$ 11	$ 616

Note 1 - Organization and Basis

Note 1 - Organization and Basis of Financial Reporting	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization and Basis of Financial Reporting Basis of Presentation and Principles of Consolidation The unaudited 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 (“BTC”); Brindlee Mountain Telephone LLC (“BMTC”); CRC Communications LLC (“CRC”); Granby Telephone LLC (“GTT”); Hopper Telecommunications LLC (“HTC”); Mid-Maine Telecom LLC (“MMTI”); Mid-Maine TelPlus LLC (“MMTP”); Otelco Mid-Missouri LLC (“MMT”) and its wholly owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC (“OTC”); Otelco Telephone LLC (“OTP”); Pine Tree Telephone LLC (“PTT”); Saco River Telephone LLC (“SRT”); Shoreham Telephone LLC (“ST”); and War Telephone LLC (“WT”). The accompanying unaudited 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 months and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other period. The unaudited condensed 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, 2014. The interim condensed consolidated financial information herein is unaudited. The information reflects all adjustments 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 During 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-01 through 2015-11. Except for ASU 2015-03, 2015-05 and 2015-11, which are discussed below, these ASUs provide technical corrections or simplification to existing guidance and to specialized industries or entities and therefore have minimal, if any , impact on the Company. In April 2015, the FASB issued ASU 2015-03, a guidance that simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments are consistent with the accounting guidance related to debt discounts. This guidance is effective for the first interim or annual period beginning after December 15, 2015. Early adoption is permitted, and the Company is currently assessing the impact of this guidance on its condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance regarding whether a cloud computing arrangement includes a software license (FASB Accounting Standard Codification Subtopic 350-40). If a cloud computing arrangement includes a software license, then the entity should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. The guidance will not change accounting principles generally accepted in the United States (“U.S. GAAP”) for an entity’s accounting for service contracts. This pronouncement is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, a guidance intended to simplify the accounting for inventory. Prior to the ASU, U.S. GAAP required an entity to measure inventory at the lower of cost or market. This pronouncement changed the measurement of inventory to the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Methods excluded from the scope of this ASU are the last-in, first-out or the retail inventory method and they will continue to be measured at the lower of cost or market. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted , and the Company is currently assessing the impact of this guidance on its condensed consolidated financial statements. In July 2015, the FASB confirmed a one-year delay in the effective date of ASU 2014-09, making the effective date for the Company the first quarter of fiscal 2019 instead of the current effective date, which is the first quarter of fiscal 2018. The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which the Company will adopt the standard. Financial Condition and Management’s Plan The Company’s current credit facility has been reduced from $133.3 million in May 2013 to $105.1 million at June 30, 2015 through both required and voluntary payments. The credit facility matures in April 2016. The Company will be in default under the credit facility if it is unable to refinance the debt thereunder at or prior to its maturity. Additionally, in the event the Company fails to comply with the financial covenants or other similar requirements in the credit facility, it would be in default under the credit facility and its ability to meet anticipated operating and capital expenditure requirements would be impaired. It is management’s current intent to refinance the credit facility prior to its maturity in April 2016; however, there can be no assurance that market conditions will allow the Company to refinance the debt under the credit facility at or prior to its maturity on terms that are acceptable to the Company, or at all. Reclassification s Certain items in the prior year’s condensed consolidated financial statements have been reclassified to conform with 2015 presentation.

Note 2 - Notes Payable

Note 2 - Notes Payable	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	2. Notes Payable Notes payable consists of the following (in thousands, except percentages): December 31, June 30 , 2014 2015 Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2014 and June 30, 2015. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016. $ 112,135 $ 105,089 Less: current portion (6,665 ) (105,089 ) Long-term notes payable $ 105,470 $ — Associated with the notes payable, the Company has capitalized and amortized deferred financing costs using the effective interest method. The Company has capitalized $2.7 million in deferred financing costs associated with the credit facility. Amortization expense for the deferred financing costs associated with the third amendment and restatement of the Company’s credit facility was $475 thousand and $447 thousand for the six months ended June 30, 2014 and 2015, respectively. The Company had a revolving credit facility on December 31, 2014 and June 30, 2015 of $5.0 million. The revolving credit facility is available until April 30, 2016. There was no balance outstanding as of December 31, 2014 or June 30, 2015. 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 $13 thousand in each of the six months ended June 30, 2014 and 2015. Maturities of notes payable for the next five years and thereafter are as follows (in thousands): 2015 (remaining) $ 3,333 2016 101,756 2017 — 2018 — 2019 — Thereafter — Total $ 105,089 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 June 30, 2015, the Company was in compliance with all such covenants and restrictions.

Note 3 - Income Tax

Note 3 - Income Tax	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	3. Income Tax As of June 30, 2015, the Company had U.S. federal and state net operating loss carryforwards of $0 and $67 thousand, respectively. As of December 31, 2014, the Company had no U.S. federal or state net operating loss carryforwards. The Company had no alternative minimum tax credit carryforwards as of December 31, 2014 or June 30, 2015. The Company establishes valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. As of June 30, 2015, the Company had no valuation allowance recorded. The effective income tax rate as of December 31, 2014 and June 30, 2015 was 38.8% and 39.7%, respectively.

Note 4 - Net Income Per Common

Note 4 - Net Income Per Common Share	6 Months Ended
	Jun. 30, 2015
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”), as well as all of the shares of Class A common stock, for which the Company has accrued an expense, that may be delivered pursuant to the purchase agreement relating to the assets of Reliable Networks of Maine, LLC (“Reliable Networks”), be issued. A reconciliation of the Company’s basic and diluted net 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 Ended June 30, Six Months Ended June 30 , 2014 2015 2014 201 5 Weighted average number of common shares outstanding - basic 3,103,728 3,239,306 3,103,728 3,239,306 Effect of dilutive securities — 46,228 — 44,026 Weighted average number of common shares and potential common shares - diluted 3,103,728 3,285,534 3,103,728 3,283,332 Net income $ 1,308 $ 1,655 $ 2,702 $ 3,790 Net income per common share - basic $ 0.42 $ 0.51 $ 0.87 $ 1.17 Net income per common share - diluted $ — $ 0.50 $ — $ 1.15

Note 5 - Revenue Concentrations

Note 5 - Revenue Concentrations	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	5. 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 15.0% and 16.5% of the Company’s total revenues for the six months ended June 30, 2014 and 2015, respectively.

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	6. Commitments and Contingencies From time to time, the Company 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. In addition, the Company may be involved in similar proceedings with interconnection carriers and the Federal Communications Commission. Currently, except as set forth below, none of the legal proceedings are expected to have a material adverse effect on the Company’s business. Sprint Communications L.P. (“Sprint”), MCI Communications Services, Inc. (“MCI”) and Verizon Select Services, Inc. (“Verizon”) have filed more than 60 lawsuits in federal courts across the United States alleging that over 400 local exchange carriers overcharged Sprint, MCI and Verizon for so-called intraMTA traffic (wireless phone calls that originate and terminate in the same metropolitan transit area). The lawsuits seek a refund of previously-paid access charges for intraMTA traffic, as well as a discount related to intraMTA traffic on a going-forward basis. One of the Company’s subsidiaries, MMT, was named as a defendant in two of the lawsuits that are being brought before the District Court for the Western District of Missouri (one filed on May 2, 2014 by Sprint and the other filed on September 5, 2014 by MCI and Verizon). In addition, one of the Company’s other subsidiaries, OTP, has been named as a defendant in a lawsuit relating to these issues filed by MCI and Verizon in the District Court for the District of Delaware on September 5, 2014. As all of the lawsuits relating to these issues raise the same fundamental questions of law, the United States Judicial Panel on Multidistrict Litigation has consolidated the lawsuits in the District Court for the Northern District of Texas for all pre-trial proceedings. At this time, it is too soon to determine whether these lawsuits will have a material adverse effect on the Company’s business.

Note 7 - Stock Plans and Stock

Note 7 - Stock Plans and Stock Associated with Acquisition	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	7. Stock Plans and Stock Associated with Acquisition The Company granted RSUs underlying 124,167 shares of Class A common stock on July 9, 2014. During the six months ended June 30, 2015, the Company granted RSUs underlying 112,174 shares of Class A common stock. These RSUs (or a portion thereof) vest with respect to each recipient over a one to three year period from the date of grant, provided the recipient remains in the employment or service of the Company as of the vesting date and, in selected instances, certain performance criteria are attained. Additionally, these RSUs (or a portion thereof) could vest earlier in the event of a change in control of the Company, or upon involuntary termination without cause. These grants are made primarily to executive-level personnel at the Company and, as a result, no compensation costs have been capitalized. The following table summarizes RSU activity as of June 30, 2015: RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 113,961 $ 4.96 Granted 112,174 $ 4.71 Vested 57,139 $ 4.96 Forfeited or cancelled 15,022 $ 4.96 Outstanding at June 30, 2015 153,974 $ 4.78 CRC acquired substantially all of the assets of Reliable Networks on January 2, 2014. Pursuant to the purchase agreement relating to the Reliable Networks acquisition, Class A common stock was issued to the former owner of Reliable Networks in 2015 and will be issued to the former owner of Reliable Networks in 2016 and 2017, contingent on Reliable Networks achieving certain financial objectives and certain other conditions being satisfied, including that certain individuals must be employed by the Company or any of its subsidiaries and in good standing on the last day of the applicable year (the “Earn-Out”). For the year ended December 31, 2014, the Company delivered 68,233 shares of Class A common stock to the former owner of Reliable Networks on March 12, 2015 as a result of the Earn-Out. The following table summarizes the Earn-Out activity as of June 30, 2015: Shares Weighted Average Earned Date Fair Value Earned at December 31, 2014 68,233 $ 5.69 Earned — $ — Issued 68,233 $ 5.69 Forfeited or cancelled — $ — Earned at June 30, 2015 — $ — Stock-based compensation expense related to RSUs and the Earn-Out was $51 thousand and $211 thousand for the three months and six months ended June 30, 2015, respectively. Accounting standards require that the Company estimate forfeitures for RSUs and the Earn-Out and reduce compensation expense accordingly. The Company has reduced its expense by the assumed forfeiture rate and will evaluate actual experience against the assumed forfeiture rate going forward. The forfeiture rate has been developed using historical performance metrics which could impact the size of the final issuance of Class A common stock. The Company has no history before 2014 with RSU forfeiture or Earn-Out stock forfeiture. As of June 30, 2015, the unrecognized total compensation cost related to unvested RSUs was $603 thousand. That cost is expected to be recognized by the end of 2018. As stated above, accounting standards require the Company to estimate forfeitures in calculating the expense related to stock-based compensation, as opposed to only recognizing these forfeitures and the corresponding reduction in expense as they occur.

Note 2 - Notes Payable (Tables)

Note 2 - Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	December 31, June 30 , 2014 2015 Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2014 and June 30, 2015. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016. $ 112,135 $ 105,089 Less: current portion (6,665 ) (105,089 ) Long-term notes payable $ 105,470 $ —
Schedule of Maturities of Long-term Debt [Table Text Block]	2015 (remaining) $ 3,333 2016 101,756 2017 — 2018 — 2019 — Thereafter — Total $ 105,089

Note 4 - Net Income Per Commo14

Note 4 - Net Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30 , 2014 2015 2014 201 5 Weighted average number of common shares outstanding - basic 3,103,728 3,239,306 3,103,728 3,239,306 Effect of dilutive securities — 46,228 — 44,026 Weighted average number of common shares and potential common shares - diluted 3,103,728 3,285,534 3,103,728 3,283,332 Net income $ 1,308 $ 1,655 $ 2,702 $ 3,790 Net income per common share - basic $ 0.42 $ 0.51 $ 0.87 $ 1.17 Net income per common share - diluted $ — $ 0.50 $ — $ 1.15

Note 7 - Stock Plans and Stoc15

Note 7 - Stock Plans and Stock Associated with Acquisition (Tables)	6 Months Ended
	Jun. 30, 2015
Reliable Networks [Member]
Notes Tables
Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable [Table Text Block]	Shares Weighted Average Earned Date Fair Value Earned at December 31, 2014 68,233 $ 5.69 Earned — $ — Issued 68,233 $ 5.69 Forfeited or cancelled — $ — Earned at June 30, 2015 — $ —
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	RSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2014 113,961 $ 4.96 Granted 112,174 $ 4.71 Vested 57,139 $ 4.96 Forfeited or cancelled 15,022 $ 4.96 Outstanding at June 30, 2015 153,974 $ 4.78

Note 1 - Organization and Bas16

Note 1 - Organization and Basis of Financial Reporting (Details Textual) - USD ($) $ in Millions	Jun. 30, 2015	May. 31, 2013
Long-term Line of Credit	$ 105.1	$ 133.3

Note 2 - Notes Payable (Details

Note 2 - Notes Payable (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	May. 31, 2013
Revolving Credit Facility [Member]
Long-term Line of Credit	$ 0		$ 0
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000		$ 5,000,000
Line of Credit Facility, Commitment Fee Amount	$ 13,000	$ 13,000
Line of Credit Facility, Commitment Fee Percentage	0.50%
Senior Credit Facility [Member]
Deferred Finance Costs, Gross	$ 2,700,000
Amortization of Financing Costs	447,000	475,000
Long-term Line of Credit	105,100,000			$ 133,300,000
Amortization of Financing Costs	$ 447,000	$ 475,000

Note 2 - Notes Payable - Summar

Note 2 - Notes Payable - Summary of Notes Payable (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
GE Capital 3rd [Member]
Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2014 and June 30, 2015. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016.	$ 105,089,000	$ 112,135,000
Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.5% at December 31, 2014 and June 30, 2015. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016.	105,089,000
Less: current portion	$ (105,089,000)	(6,665,000)
Long-term notes payable		$ 105,470,000

Note 2 - Notes Payable - Maturi

Note 2 - Notes Payable - Maturities of Notes Payable (Details)	Jun. 30, 2015USD ($)
2015 (remaining)	$ 3,333,000
2,016	101,756,000
2,017	0
2,018	0
2,019	0
Thereafter	0
Total	$ 105,089,000

Note 3 - Income Tax (Details Te

Note 3 - Income Tax (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Domestic Tax Authority [Member]
Operating Loss Carryforwards	$ 0	$ 0
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	67,000	0
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	0	$ 0
Deferred Tax Assets, Valuation Allowance	$ 0
Effective Income Tax Rate Reconciliation, Percent	39.70%	38.80%

Note 4 - Net Income Per Commo21

Note 4 - Net Income Per Common Share - Reconciliation of Income (Loss) Per Common Share (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Weighted average number of common shares outstanding - basic (in shares)	3,239,306	3,103,728	3,239,306	3,103,728
Effect of dilutive securities (in shares)	46,228		44,026
Weighted average number of common shares and potential common shares - diluted (in shares)	3,285,534	3,103,728	3,283,332	3,103,728
Net income	$ 1,655	$ 1,308	$ 3,790	$ 2,702
Net income per common share - basic (in dollars per share)	$ 0.51	$ 0.42	$ 1.17	$ 0.87
Net income per common share - diluted (in dollars per share)	$ 0.50	$ 0.42	$ 1.15	$ 0.87

Note 5 - Revenue Concentratio22

Note 5 - Revenue Concentrations (Details Textual)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | National Exchange Carrier Association [Member]
Concentration Risk, Percentage	16.50%	15.00%

Note 7 - Stock Plans and Stoc23

Note 7 - Stock Plans and Stock Associated with Acquisition (Details Textual) - USD ($)	Jul. 09, 2014	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Restricted Stock Units (RSUs) [Member] | Common Class A [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	124,167			112,174
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
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount				$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				112,174
Allocated Share-based Compensation Expense		$ 51,000		$ 211,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 603,000		$ 603,000
Common Class A [Member] | Reliable Networks [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares					68,233
Reliable Networks [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares			68,233		68,233

Note 7 - Stock Plans and Stoc24

Note 7 - Stock Plans and Stock Associated with Acquisition - RSU Activity (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares	Total
Outstanding at December 31, 2014 (in shares)	113,961
Outstanding at December 31, 2014 (in dollars per share)	$ 4.96
Granted (in shares)	112,174
Granted (in dollars per share)	$ 4.71
Vested (in shares)	57,139
Vested (in dollars per share)	$ 4.96
Forfeited or cancelled (in shares)	15,022
Forfeited or cancelled (in dollars per share)	$ 4.96
Outstanding at June 30, 2015 (in shares)	153,974
Outstanding at June 30, 2015 (in dollars per share)	$ 4.78

Note 7 - Stock Plans and Stoc25

Note 7 - Stock Plans and Stock Associated with Acquisition - Earn-Out Activity (Details) - Reliable Networks [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Earned (in shares)	68,233	68,233
Earned (in dollars per share)	$ 5.69	$ 5.69