Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | OTELCO INC. | ||
Entity Central Index Key | 1,288,359 | ||
Trading Symbol | otel | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 21,298,136 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 3,346,687 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 10,538 | $ 6,884 |
Accounts receivable: | ||
Due from subscribers, net of allowance for doubtful accounts of $187 and $258, respectively | 5,035 | 5,185 |
Other | 1,528 | 1,722 |
Materials and supplies | 2,184 | 1,906 |
Prepaid expenses | 2,912 | 2,775 |
Deferred income taxes | 57 | |
Total current assets | 22,197 | 18,529 |
Property and equipment, net | 49,271 | 49,811 |
Goodwill | 44,976 | 44,976 |
Intangible assets, net | 1,785 | 2,363 |
Investments | 1,821 | 1,846 |
Other assets | 222 | 259 |
Total assets | 120,272 | 117,784 |
Current liabilities | ||
Accounts payable | 1,477 | 1,818 |
Accrued expenses | 4,730 | 4,567 |
Advance billings and payments | 1,487 | 1,418 |
Deferred income taxes | 24 | |
Customer Deposits | 62 | 68 |
Senior notes payable, net of debt issuance cost | 6,071 | 2,203 |
Total current liabilities | 13,851 | 10,074 |
Deferred income taxes | 28,256 | 26,163 |
Advance billings and payments | 1,987 | 628 |
Other liabilities | 26 | 27 |
Long-term notes payable, less current maturities and debt issuance cost | 86,860 | 97,052 |
Total liabilities | 130,980 | 133,944 |
Stockholders' deficit | ||
Additional paid in capital | 4,186 | 3,881 |
Accumulated deficit | (14,927) | (20,073) |
Total stockholders' deficit | (10,708) | (16,160) |
Total liabilities and stockholders' deficit | 120,272 | 117,784 |
Common Class A [Member] | ||
Stockholders' deficit | ||
Common Stock, Value | 33 | 30 |
Common Class B [Member] | ||
Stockholders' deficit | ||
Common Stock, Value | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 187 | $ 258 |
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) | 3,291,750 | 3,015,099 |
Common stock, outstanding (in shares) | 3,291,750 | 3,015,099 |
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) | 0 | 232,780 |
Common stock, outstanding (in shares) | 0 | 232,780 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 68,944 | $ 71,102 | $ 73,870 |
Operating expenses | |||
Cost of services | 31,875 | 33,123 | 35,516 |
Selling, general and administrative expenses | 10,234 | 9,846 | 10,913 |
Depreciation and amortization | 8,022 | 8,878 | 10,583 |
Total operating expenses | 50,131 | 51,847 | 57,012 |
Income from operations | 18,813 | 19,255 | 16,858 |
Other income (expense) | |||
Interest expense | (10,634) | (7,894) | (8,854) |
Other income | 625 | 1,067 | 210 |
Total other expense | (10,009) | (6,827) | (8,644) |
Income before income tax expense | 8,804 | 12,428 | 8,214 |
Income tax expense | (3,658) | (4,944) | (3,185) |
Net income | $ 5,146 | $ 7,484 | $ 5,029 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 3,283,177 | 3,239,306 | 3,103,728 |
Diluted (in shares) | 3,404,696 | 3,313,641 | 3,168,161 |
Basic net income per common share (in dollars per share) | $ 1.57 | $ 2.31 | $ 1.62 |
Diluted net income per common share (in dollars per share) | $ 1.51 | $ 2.26 | $ 1.59 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Conversion of Class B Common Stock to Class A Common Stock [Member]Common Stock [Member]Common Class A [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member]Common Stock [Member]Common Class B [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member]Additional Paid-in Capital [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member]Retained Earnings [Member] | Conversion of Class B Common Stock to Class A Common Stock [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance, shares (in shares) at Dec. 31, 2013 | 2,870,948 | 232,780 | ||||||||
Balance at Dec. 31, 2013 | $ 29 | $ 2 | $ 2,876 | $ (32,586) | $ (29,679) | |||||
Net income | 5,029 | 5,029 | ||||||||
Stock-based compensation expense | 643 | 643 | ||||||||
Issuance of Class A Stock (in shares) | 10,206 | |||||||||
Issuance of Common Stock | ||||||||||
Balance, shares (in shares) at Dec. 31, 2014 | 2,881,154 | 232,780 | ||||||||
Balance at Dec. 31, 2014 | $ 29 | $ 2 | 3,519 | (27,557) | (24,007) | |||||
Net income | 7,484 | 7,484 | ||||||||
Stock-based compensation expense | 362 | 362 | ||||||||
Issuance of Class A Stock (in shares) | 133,945 | |||||||||
Issuance of Common Stock | $ 1 | 1 | ||||||||
Balance, shares (in shares) at Dec. 31, 2015 | 3,015,099 | 232,780 | ||||||||
Balance at Dec. 31, 2015 | $ 30 | $ 2 | 3,881 | (20,073) | (16,160) | |||||
Net income | 5,146 | 5,146 | ||||||||
Stock-based compensation expense | 415 | 415 | ||||||||
Issuance of Class A Stock (in shares) | 43,871 | |||||||||
Issuance of Common Stock | $ 1 | (1) | ||||||||
Balance, shares (in shares) at Dec. 31, 2016 | 3,291,750 | |||||||||
Balance at Dec. 31, 2016 | $ 33 | 4,186 | (14,927) | (10,708) | ||||||
Tax withholdings paid on behalf of employees for restricted stock units | $ (109) | $ (109) | ||||||||
Conversion of Class B Stock to Class A Stock (in shares) | 232,780 | (232,780) | ||||||||
Conversion of Class B Stock to Class A Stock | $ 2 | $ (2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 5,146 | $ 7,484 | $ 5,029 |
Adjustments to reconcile net income to cash flows provided by operating activities: | |||
Depreciation | 7,137 | 7,678 | 8,941 |
Amortization | 885 | 1,200 | 1,642 |
Amortization of loan costs | 1,242 | 880 | 936 |
Loss on extinguishment of debt | 155 | ||
Provision for deferred income taxes | 2,001 | 1,882 | 2,692 |
Excess tax benefit from stock-based compensation | 173 | 144 | 249 |
Provision for uncollectible accounts receivable | 348 | 442 | 476 |
Stock-based compensation | 415 | 362 | 643 |
Payment in kind interest - subordinated debt | 273 | ||
Changes in operating assets and liabilities | |||
Accounts receivable | (4) | (11) | (128) |
Materials and supplies | (278) | 9 | (261) |
Prepaid expenses and other assets | (100) | 878 | (1,486) |
Accounts payable and accrued expenses | (178) | 227 | (534) |
Advance billings and payments | 1,428 | (45) | (67) |
Other liabilities | (6) | (117) | (10) |
Net cash from operating activities | 18,637 | 21,013 | 18,122 |
Cash flows used in investing activities: | |||
Acquisition and construction of property and equipment | (6,879) | (6,612) | (6,015) |
Retirement of investment | (1) | (1) | |
Proceeds from sale of property and equipment | 58 | ||
Purchase of Reliable Networks, net of cash acquired | (500) | ||
Net cash used in investing activities | (6,880) | (6,612) | (6,458) |
Cash flows used in financing activities: | |||
Loan origination costs | (5,242) | (516) | |
Principal repayment of long-term notes payable | (103,052) | (12,083) | (16,498) |
Proceeds from loan refinancing | 100,300 | ||
Tax withholdings paid on behalf of employees for restricted stock units | (109) | ||
Net cash used in financing activities | (8,103) | (12,599) | (16,498) |
Net increase (decrease) in cash and cash equivalents | 3,654 | 1,802 | (4,834) |
Cash and cash equivalents, beginning of period | 6,884 | 5,082 | 9,916 |
Cash and cash equivalents, end of period | 10,538 | 6,884 | 5,082 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 8,364 | 7,016 | 7,924 |
Income taxes paid | 1,923 | 2,414 | 1,535 |
Conversion of Class B common stock to Class A common stock | 2 | ||
Issuance of Class A common stock | $ 1 | $ 1 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Otelco Inc. (together with its consolidated subsidiaries, the “Company”) provides a broad range of telecommunication services on a retail and wholesale basis. These services include local and long distance calling; network access to and from the Company’s customers; data transport; digital high-speed and legacy dial-up internet access; cable and Internet Protocol television; other telephone related services; and cloud hosting and managed services. The principal markets for these services are business and residential customers residing in and adjacent to the exchanges the Company serves in Alabama, Maine, Massachusetts, Missouri, Vermont, and West Virginia. In addition, the Company serves business customers throughout Maine and New Hampshire and provides legacy dial-up internet service throughout the states of Maine and Missouri. The Company offers various communications services that are sold to economically similar customers in a comparable manner of distribution. The Company also offers cloud hosting and managed services for small and mid-sized companies who rely on mission-critical software applications. The majority of customers buy multiple services, often bundled together at a single price. The Company views, manages and evaluates the results of its operations from the various communications services as one one Refinancing On January 25, 2016, five $85.0 five $5.0 five $15.0 February 17, 2016, $15.3 $85.0 $15.3 April 30, 2016. $1.0 April 1, 2016. $15 $140 |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Otelco Inc. and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC (“BTC”); Brindlee Mountain Telephone LLC; CRC Communications LLC (“CRC”); Granby Telephone LLC; Hopper Telecommunications LLC; Mid-Maine Telecom LLC; Mid-Maine TelPlus LLC; Otelco Mid-Missouri LLC (“MMT”) and its wholly-owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC (“OTP”); Pine Tree Telephone LLC; Saco River Telephone LLC; Shoreham Telephone LLC; and War Telephone LLC. The accompanying consolidated financial statements include the accounts of Otelco Inc. and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. Use of Estimates The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may Significant accounting estimates include the recoverability of goodwill, identified intangibles, long-term assets, deferred tax valuation allowances and allowance for bad debt. Regulatory Accounting The Company follows the accounting for regulated enterprises, which is now part of Accounting Standards Codification (“ASC”) 980, Regulated Operations 980”), 980 980 980 (1) (2) 980 December 31, 2016 2015, 77.0% and 76.5%, 980. The Company is subject to reviews and audits by regulatory agencies. The effect of these reviews and audits, if any, will be recorded in the period in which they first Intangible Assets and Goodwill Intangible assets consist primarily of the fair values of customer related intangibles, non-compete agreements and long-term customer contracts acquired in connection with business combinations. Goodwill represents the excess of total acquisition cost over the assigned value of net identifiable tangible and intangible assets acquired through various business combinations, less any impairment. Due to the regulatory accounting required by ASC 980, 805, Business Combinations 2004. 47 32.2000, The Company performs a quarterly review of its identified intangible assets to determine if facts and circumstances exist which indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may Revenue Recognition Local services . Local services revenue for monthly recurring local services is billed in advance to a portion of the Company’s customers and in arrears to the balance of the customers. The Company records revenue for charges that have not yet been invoiced to its customers as unbilled revenue when services are rendered. The Company records revenue billed in advance as advance billings and defers recognition until such revenue is earned. Long distance service is billed to customers in arrears based on actual usage except when it is included in service bundles. The Company records unbilled long distance revenue as unbilled revenue when services are rendered. In bundles, unlimited usage is billed in arrears at a flat rate. Network access . Network access revenue is derived from several sources. Revenue for interstate access services is received through tariffed access charges filed with the Federal Communications Commission (the “FCC”). Eight of the Company’s RLECs utilize the National Exchange Carrier Association (“NECA”), who files tariffs with the FCC on behalf of the NECA member companies. These access charges are billed by the Company to interstate interexchange carriers and pooled with like-revenues from all NECA member companies. A portion of the pooled access charge revenue received by the Company is based upon its actual cost of providing interstate access service, plus a return on the investment dedicated to providing that service. The balance of the pooled access charge revenue received by the Company is based upon the nationwide average schedule costs of providing interstate access services. One of the Company’s RLECs utilizes the NECA to file a common line tariff with the FCC, and pools the common line access charge revenues. Ten of the Company’s RLECs file Common Line tariffs directly with the FCC, and bill and keep the common line access charge revenues. Three of the Company’s RLECs also file Traffic Sensitive tariffs directly with the FCC, and bill and keep the Traffic Sensitive access revenues. Rates for the Company’s competitive subsidiaries are set by FCC rule to be no more than the interconnecting interstate rate of the predominant local carrier. Revenue for intrastate access service is received through tariffed access charges billed by the Company to the originating intrastate carrier using access rates filed with the Alabama Public Service Commission (the “APSC”), the Maine Public Utilities Commission (the “MPUC”), the Massachusetts Department of Telecommunications and Cable (the “MDTC”), the Missouri Public Service Commission (the “MPSC”), the New Hampshire Public Utilities Commission (the “NHPUC”), the Vermont Public Service Board (the “VPSB”) and the West Virginia Public Service Commission (the “WVPSC”) and are retained by the Company. Revenue for the intrastate/interLATA access service is received through tariffed access charges as filed with the APSC, MDTC, MPSC, MPUC, NHPUC, VPSB and WVPSC. These access charges are billed to the intrastate carriers and are retained by the Company. Revenue for terminating and originating long distance service is received through charges for providing usage of the local exchange network. Toll revenues are recognized when services are rendered. The FCC’s Intercarrier Compensation order, issued in October 2011, July 2014. 2014, three 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 NECA in the form of monthly settlements, or bill and keep of access charges. Such revenues amounted to 18.6%, 17.4%, 15.5% December 31, 2016, 2015, 2014, March 2016, 25 2016 25 2021. Internet, transport service, cable and satellite television and cloud hosting and managed services December 31, 2016 2015 $628 $681 Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality, short-term money market instruments and highly liquid debt instruments with an original maturity of three Accounts Receivable The Company extends credit to its business and residential customers based upon a written credit policy. Service interruption is the primary vehicle for controlling losses. Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate for the amount of probable credit losses in the Company’s existing accounts receivable. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other information. Receivable balances are reviewed on an aged basis and account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Materials and Supplies Materials and supplies are stated at the lower of cost or market value. Cost is determined using an average cost basis. Property and Equipment Regulated property and equipment is stated at original cost less any impairment. Unregulated property and equipment purchased through acquisitions is stated at its fair value at the date of acquisition less any impairment. Expenditures for improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed when incurred. Depreciation of regulated property and equipment is computed principally using the straight-line method over useful lives determined by the APSC for Alabama locations, while the other regulated locations use similar useful lives as Alabama. Depreciation of unregulated property and equipment primarily employs the straight-line method over industry standard estimated useful lives. Long-Lived Assets The Company reviews its long-lived assets for impairment at each balance sheet date and whenever events or changes in circumstances indicate that the carrying amount of an asset should be assessed. To determine if impairment exists, the Company estimates the future undiscounted cash flows expected to result from the use of the asset being reviewed for impairment. If the sum of these expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss in accordance with guidance included in ASC 360, Property, Plant, and Equipment Deferred Financing Costs Deferred financing and loan costs consist of debt issuance costs incurred in obtaining long-term financing, which are amortized using the effective interest method. Amortization of deferred financing and loan costs is classified as “Interest expense”. When amendments to debt agreements are considered to extinguish existing debt per guidance included in ASC 470, Debt Income Taxes The Company accounts for income taxes using the asset and liability approach in accordance with guidance included in ASC 740, Income Taxes 740”). The provision for income taxes consists of an amount for the taxes currently payable and a provision for the tax consequences deferred to future periods. Interest and penalties related to income tax matters would be recognized in income tax expense. As of December 31, 2016, no The Company conducts business in multiple jurisdictions and, as a result, one 2013 Fair Value of Financial Instruments The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaids, accounts payable and accrued liabilities, approximate their fair values as of December 31, 2016 2015 December 31, 2016 2015 Income per Common Share The Company computes net income per common share in accordance with the provisions included in ASC 260, Earnings per Share 260”). 260, Recently Adopted Accounting Pronouncements In April 2015, 2015 03, Interest–Imputation of Interest (Subtopic 835 30): first December 15, 2015. March 31, 2016. 8 In March 2016, 2016 09 , Compensation–Stock Compensation (Topic 718): December 15, 2016, March 31, 2016 Recent Accounting Pronouncements During 2015 2016, 2015 01 2015 17 2016 01 2016 20, , 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 May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606) 2014 09”). December 15, 2016, July 2015, 2015 14, Revenue from Contracts with Customers (Topic 606): eferral of the Effective Date. 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, January 2017, 2017 03, Accounting Changes and Error Corrections (Topic 250) 323) 2017 03”). 2014 09 2014 09 2014 09 2014 09 2014 09 In November 2015, 2015 17, Income Taxes (Topic 740): . This ASU provides guidance that simplifies the presentation of deferred income taxes. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, In February 2016, 2016 02, Leases (Topic 842) 2016 02”) . December 15, 2018, In January 2017, 2017 03, 2016 02 2016 02 In August 2016, 2016 15 , Statement of Cash Flows (Topic 230): 230, December 15, 2017, |
Note 3 - Impairments
Note 3 - Impairments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | 3. Impairments ASC 350, Intangibles – Goodwill and Other 350”), During the impairment review as of October 1, 2016 2015, no no December 31, 2016 2015. no December 31, 2016 2015 |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4. Goodwill and Intangible Assets ASC 350 one three December 31, 2016, 87.2%, 12.8%, 1.0%, October 1, 2016 no no October 1, 2016 December 31, 2016 There was no 2016 2015, $39,199 $5,758 $19 December 31, 2016 2015. December 31, 2015 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (21,685 ) $ 2,340 Contract relationships 19,600 (19,600 ) - Non-competition 107 (95 ) 12 Trade name 23 (12 ) 11 Total $ 43,755 $ (41,392 ) $ 2,363 December 31, 2016 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,254 ) $ 1,771 Contract relationships 19,600 (19,600 ) - Non-competition 107 (101 ) 6 Trade name 23 (15 ) 8 Total $ 43,755 $ (41,970 ) $ 1,785 These intangible assets had a range of 2 15 December 31, 2016 Aggregate amortization expense for the years ended December 31, 2014 $ 1,258 2015 $ 815 2016 $ 578 Expected amortization expense for the years ending December 31, 2017 $ 458 2018 408 2019 389 2020 372 2021 158 Total $ 1,785 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and Equipment A summary of property and equipment is shown as follows (in thousands, except estimated life): Estimated December 31, Life 2016 2015 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 12,812 12,723 Telephone equipment 6 - 20 234,422 233,099 Cable television equipment 7 12,199 12,129 Furniture and equipment 8 - 14 3,067 3,045 Vehicles 7 - 9 6,855 6,516 Computer software equipment 5 - 7 16,648 16,251 Internet equipment 5 3,891 3,797 Total property and equipment 291,058 288,724 Accumulated depreciation and amortization (241,787 ) (238,913 ) Net property and equipment $ 49,271 $ 49,811 Depreciation expense for the years ended December 31, 2016, 2015 2014 $7,137 $7,678 $8,941 $307 $385 $385 December 31, 2016, 2015 2014, |
Note 6 - Other Accounts Receiva
Note 6 - Other Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | 6. Other Accounts Receivable Other accounts receivable consist of the following (in thousands) as of: December 31, 2016 2015 Carrier access bills receivable $ 380 $ 570 NECA receivable 1,028 1,030 Receivables from Alabama Service Fund 56 59 Other miscellaneous 64 63 $ 1,528 $ 1,722 |
Note 7 - Investments
Note 7 - Investments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Investment [Text Block] | 7. Investments Investments consist of the following (in thousands) as of: December 31, 2016 2015 Investment in CoBank stock $ 1,475 $ 1,475 Rental property 271 296 Other miscellaneous 75 75 $ 1,821 $ 1,846 The investment in CoBank stock is carried at historical cost due to no readily determinable fair value for those instruments being available. Management believes there has been no other than temporary impairment in such investment. This investment consists of patronage certificates that represent ownership in the financial institution where the Company had debt. These certificates yield dividends on an annual basis, and the investment is redeemed ratably subsequent to the repayment of the debt. |
Note 8 - Notes Payable
Note 8 - Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Notes Payable Notes payable consists of the following (in thousands, except percentages) as of: December 31, December 31, 2016 2015 Third amended and restated term credit facility with Antares Capital; variable interest rate of 6.50% at December 31, 2015. The Previous Credit Facility was secured by the total assets of the subsidiary guarantors.The Previous Credit Facility was fully repaid on February 17, 2016. $ - $ 99,255 Less: Current portion of long-term debt, net of debt issuance cost of $0 and $797, respectively - (2,203 ) $ - $ 97,052 Current Long-Term December 31, December 31, Senior Loan Agreement with Cerberus Business Finance, LLC; variable interest rate of 8.75% at December 31, 2016, interest is monthly, paid in arrears on the first business day of each month. The Senior Loan Agreement is secured by the total assets of the subsidiary guarantors. The unpaid balance is due February 17, 2021. $ 7,125 $ 74,875 $ 82,000 $ - Debt issuance cost (1,054 ) (2,835 ) (3,889 ) - Senior notes payable, net of debt issuance cost $ 6,071 $ 72,040 $ 78,111 $ - December 31, December 31, 2015 Subordinated Loan Agreement with New Spring Mezzanine Capital III, L.P.; fixed interest rate due monthly of 12.00% at December 31, 2016. Payment in Kind (“PIK”) interest rate of 2.00% per annum. PIK interest accrued is added to the principal amount then outstanding on the last business day of each quarter. The unpaid balance is due August 17, 2021. $ 15,300 $ - PIK interest added to principal 273 - Less: Long-term portion of debt issuance cost (753 ) - Long-term notes payable, net of debt issuance cost $ 14,820 $ - Associated with the Senior Loan Agreement, the Company has capitalized and amortized deferred financing cost using the effective interest method. The Company has capitalized $4.9 $978 December 31, 2016 Associated with the Subordinated Loan Agreement, the Company has capitalized and amortized deferred financing cost using the effective interest method. The Company has capitalized $892 $139 December 31, 2016 Associated with the Previous Credit Facility, the Company had capitalized and amortized deferred financing cost using the effective interest method. The Company had capitalized $2.7 third $141 $880 December 31, 2016 2015, $140 $15 December 31, 2016 The Company had a revolving credit facility on December 31, 2015 $5.0 no December 31, 2015. February 17, 2016. 0.50% $3 $25 December 31, 2016 2015, The revolving credit facility associated with the Company’s Senior Loan Agreement had a maximum borrowing capacity of $5.0 December 31, 2016. February 17, 2021. no December 31, 2016. 0.75% $33 December 31, 2016. Maturities of notes payable for the next five 2017 $ 4,000 2018 4,000 2019 4,000 2020 4,000 2021 81,300 Total $ 97,300 In addition, PIK interest of $1,772 $5,758 The Company’s notes payable agreements are subject to certain financial covenants and restrictions on indebtedness, financial guarantees, business combinations and other related items. As of December 31, 2016, |
Note 9 - Acquisition
Note 9 - Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 9. Acquisition On January 2, 2014, . CRC paid $0.5 March 2015 . The results of operations from Reliable Networks are included in the Company’s consolidated results of operations beginning January 2, 2014. |
Note 10 - Income Tax
Note 10 - Income Tax | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 10. Income Tax Income tax expense for the years ended December 31, 2016, 2015 2014 For the Years Ended December 31, 2016 2015 2014 Federal income taxes Current $ 1,176 $ 2,552 $ 230 Deferred 1,872 1,661 2,380 Total federal tax expense 3,048 4,213 2,610 State income taxes Current 308 366 14 Deferred 302 365 561 Total state tax expense 610 731 575 Total income tax expense $ 3,658 $ 4,944 $ 3,185 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2016 2015 December 31, 2016 2015 Deferred tax liabilities: Amortization $ (16,588 ) $ (16,107 ) Depreciation (11,966 ) (10,541 ) Prepaid expense (444 ) (415 ) State net operating loss carryforwards and adjustments (279 ) (49 ) Other (13 ) (13 ) Total deferred tax liabilities $ (29,290 ) $ (27,125 ) Deferred tax assets: Deferred compensation $ 232 $ 234 Advance payments 245 266 Bad debt 121 169 Other 412 350 Total net deferred tax assets $ 1,010 $ 1,019 As of December 31, 2016, $0 $25 December 31, 2015, $0 $68 no December 31, 2016 December 31, 2015. December 31, 2016, no The effective income tax rates as of December 31, 2016 December 31, 2015 41.5% 39.8%, ASC 740 December 31, 2016, 2015 2014, 2013 December 31, 2016, 2015 2014. For the Years Ended December 31, 2016 2015 2014 Federal income tax at statutory rate 35 % 35 % 35 % Federal income tax provision at statutory rate $ 3,081 $ 4,349 $ 2,875 State income tax provision, net of federal income tax effects 397 475 339 Other 180 120 (29 ) Provision for income taxes $ 3,658 $ 4,944 $ 3,185 Effective income tax rate 41.5 % 39.8 % 38.8 % |
Note 11 - Employee Benefit Prog
Note 11 - Employee Benefit Program | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 11. Employee Benefit Program Employees of all subsidiaries except BTC participate in a Company-sponsored defined contribution savings plan under Section 401(k) $18 $18 $17.5 2016, 2015 2014, 4.5 2016, 2015 2014. December 31, 2016, 2015, 2014, $508 $520 $494 The employees of BTC participate in a multiemployer Retirement and Security Program (“RSP”) as a defined benefit plan and a Savings Plan (“SP”) provided through the National Telecommunications Cooperative Association. The risks associated with participating in a multiemployer plan are different from a single-employer plan. Contributions to the multiemployer plan by the Company may may 1.0% 2016, 2015 2014, 4.5 401(k) no 2016, 2015 2014. December 31, 2016, 2015 2014, $16 $15 $15 |
Note 12 - Net Income Per Common
Note 12 - Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 12. 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 A reconciliation of the common shares for 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): For the Years Ended December 31, 2016 2015 2014 Weighted average number of common shares outstanding - basic 3,283,177 3,239,306 3,103,728 Effect of dilutive securities 121,519 74,335 64,433 Weighted average number of common shares and potential common shares - diluted 3,404,696 3,313,641 3,168,161 Net income $ 5,146 $ 7,484 $ 5,029 Net income per common share - basic $ 1.57 $ 2.31 $ 1.62 Net income per common share - diluted $ 1.51 $ 2.26 $ 1.59 |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 13. Fair Value Measurement The Company adopted ASC 820, Fair Value Measurements and Disclosures 820”), ASC 820 820 three ● Level 1 ● Level 2 1, ● Level 3 may Fair Value Notes Payable The fair value of the Company’s notes payable is determined using various methods, including quoted market prices for notes with similar terms of maturity, which is a Level 2 3 Previous Credit Facility Carrying Value Fair Value Notes payable December 31, 2015 $ 100,052 $ 102,076 Notes payable December 31, 2016 $ - $ - Senior Loan Agreement Carrying Value Fair Value Notes payable December 31, 2015 $ - $ - Notes payable December 31, 2016 $ 82,000 $ 83,989 Subordinated Loan Agreement Carrying Value Fair Value Notes payable December 31, 2015 $ - $ - Notes payable December 31, 2016 $ 15,573 $ 15,605 |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and Contingencies From time to time, the Company may may Sprint Communications L.P. (“Sprint”), MCI Communications Services, Inc. (“MCI”) and Verizon Select Services, Inc. (“Verizon”) have filed more than 60 400 two (one May 2, 2014 September 5, 2014 one September 5, 2014. November 17, 2015, 3 3”) 3 January 7, 2017, 3 On November 10, 2014, (1) (2) may (3) (4) may March 11, 2015, Leases Minimum future rental commitments under non-cancellable operating leases, primarily for real property and office facilities, at December 31, 2016 2017 $ 521 2018 521 2019 497 2020 474 2021 437 Thereafter 930 Total $ 3,380 Rent expense for the years ended December 31, 2016, 2015 2014 $562 $582 $616 |
Note 15 - Stock Plans and Stock
Note 15 - Stock Plans and Stock Associated with Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 15. Stock Plans and Stock Associated with Acquisition During the years ended December 31, 2015 2014, 246,701 90,940 119,655 May 12, 2016. December 31, 2016, 203,640 one three no The following table summarizes RSU activity as of December 31, 2016: Weighted Average Grant Date RSUs Fair Value Outstanding at December 31, 2015 155,761 $ 4.78 Granted 119,655 $ 4.40 Vested (65,301 ) $ 4.75 Forfeited or cancelled (6,475 ) $ 4.71 Outstanding at December 31, 2016 203,640 $ 4.57 CRC acquired substantially all of the assets of Reliable Networks on January 2, 2014. 2015 one December 31, 2014, 68,233 March 12, 2015 December 31, 2016 2015, no Stock-based compensation expense related to RSUs and the Earn-Out was $415 $362 December 31, 2016 2015, 2014 As of December 31, 2016 2015, $503 $470 2019. As stated above, the Company continues 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. The tax benefit recognized with respect to RSUs and the Earn-Out during the years ended December 31, 2016 2015 $172 $144 |
Note 16 - Selected Quarterly Fi
Note 16 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 16. Selected Quarterly Financial Data (unaudited and in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2015: Revenue $ 17,643 $ 17,892 $ 17,850 $ 17,717 Operating income $ 4,508 $ 4,765 $ 4,910 $ 5,072 Net income $ 2,135 $ 1,655 $ 1,850 $ 1,844 Net income per common share - basic $ 0.66 $ 0.51 $ 0.57 $ 0.57 Net income per common share - diluted $ 0.65 $ 0.50 $ 0.56 $ 0.54 Fiscal 2016: Revenue $ 17,490 $ 17,232 $ 17,389 $ 16,833 Operating income $ 4,746 $ 4,899 $ 4,561 $ 4,607 Net income $ 1,750 $ 1,324 $ 1,125 $ 947 Net income per common share - basic $ 0.53 $ 0.40 $ 0.34 $ 0.30 Net income per common share - diluted $ 0.52 $ 0.39 $ 0.33 $ 0.27 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Refinancing On January 25, 2016, five $85.0 five $5.0 five $15.0 February 17, 2016, $15.3 $85.0 $15.3 April 30, 2016. $1.0 April 1, 2016. $15 $140 |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Otelco Inc. and its subsidiaries, all of which are either directly or indirectly wholly owned. These include: Blountsville Telephone LLC (“BTC”); Brindlee Mountain Telephone LLC; CRC Communications LLC (“CRC”); Granby Telephone LLC; Hopper Telecommunications LLC; Mid-Maine Telecom LLC; Mid-Maine TelPlus LLC; Otelco Mid-Missouri LLC (“MMT”) and its wholly-owned subsidiary I-Land Internet Services LLC; Otelco Telecommunications LLC; Otelco Telephone LLC (“OTP”); Pine Tree Telephone LLC; Saco River Telephone LLC; Shoreham Telephone LLC; and War Telephone LLC. The accompanying consolidated financial statements include the accounts of Otelco Inc. and all of the aforesaid subsidiaries after elimination of all material intercompany balances and transactions. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may Significant accounting estimates include the recoverability of goodwill, identified intangibles, long-term assets, deferred tax valuation allowances and allowance for bad debt. |
Intercompany Profit to Regulated Affiliates, Policy [Policy Text Block] | Regulatory Accounting The Company follows the accounting for regulated enterprises, which is now part of Accounting Standards Codification (“ASC”) 980, Regulated Operations 980”), 980 980 980 (1) (2) 980 December 31, 2016 2015, 77.0% and 76.5%, 980. The Company is subject to reviews and audits by regulatory agencies. The effect of these reviews and audits, if any, will be recorded in the period in which they first |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets and Goodwill Intangible assets consist primarily of the fair values of customer related intangibles, non-compete agreements and long-term customer contracts acquired in connection with business combinations. Goodwill represents the excess of total acquisition cost over the assigned value of net identifiable tangible and intangible assets acquired through various business combinations, less any impairment. Due to the regulatory accounting required by ASC 980, 805, Business Combinations 2004. 47 32.2000, The Company performs a quarterly review of its identified intangible assets to determine if facts and circumstances exist which indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Local services . Local services revenue for monthly recurring local services is billed in advance to a portion of the Company’s customers and in arrears to the balance of the customers. The Company records revenue for charges that have not yet been invoiced to its customers as unbilled revenue when services are rendered. The Company records revenue billed in advance as advance billings and defers recognition until such revenue is earned. Long distance service is billed to customers in arrears based on actual usage except when it is included in service bundles. The Company records unbilled long distance revenue as unbilled revenue when services are rendered. In bundles, unlimited usage is billed in arrears at a flat rate. Network access . Network access revenue is derived from several sources. Revenue for interstate access services is received through tariffed access charges filed with the Federal Communications Commission (the “FCC”). Eight of the Company’s RLECs utilize the National Exchange Carrier Association (“NECA”), who files tariffs with the FCC on behalf of the NECA member companies. These access charges are billed by the Company to interstate interexchange carriers and pooled with like-revenues from all NECA member companies. A portion of the pooled access charge revenue received by the Company is based upon its actual cost of providing interstate access service, plus a return on the investment dedicated to providing that service. The balance of the pooled access charge revenue received by the Company is based upon the nationwide average schedule costs of providing interstate access services. One of the Company’s RLECs utilizes the NECA to file a common line tariff with the FCC, and pools the common line access charge revenues. Ten of the Company’s RLECs file Common Line tariffs directly with the FCC, and bill and keep the common line access charge revenues. Three of the Company’s RLECs also file Traffic Sensitive tariffs directly with the FCC, and bill and keep the Traffic Sensitive access revenues. Rates for the Company’s competitive subsidiaries are set by FCC rule to be no more than the interconnecting interstate rate of the predominant local carrier. Revenue for intrastate access service is received through tariffed access charges billed by the Company to the originating intrastate carrier using access rates filed with the Alabama Public Service Commission (the “APSC”), the Maine Public Utilities Commission (the “MPUC”), the Massachusetts Department of Telecommunications and Cable (the “MDTC”), the Missouri Public Service Commission (the “MPSC”), the New Hampshire Public Utilities Commission (the “NHPUC”), the Vermont Public Service Board (the “VPSB”) and the West Virginia Public Service Commission (the “WVPSC”) and are retained by the Company. Revenue for the intrastate/interLATA access service is received through tariffed access charges as filed with the APSC, MDTC, MPSC, MPUC, NHPUC, VPSB and WVPSC. These access charges are billed to the intrastate carriers and are retained by the Company. Revenue for terminating and originating long distance service is received through charges for providing usage of the local exchange network. Toll revenues are recognized when services are rendered. The FCC’s Intercarrier Compensation order, issued in October 2011, July 2014. 2014, three 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 NECA in the form of monthly settlements, or bill and keep of access charges. Such revenues amounted to 18.6%, 17.4%, 15.5% December 31, 2016, 2015, 2014, March 2016, 25 2016 25 2021. Internet, transport service, cable and satellite television and cloud hosting and managed services December 31, 2016 2015 $628 $681 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents are stated at cost plus accrued interest, which approximates fair value. Cash equivalents are high-quality, short-term money market instruments and highly liquid debt instruments with an original maturity of three |
Receivables, Policy [Policy Text Block] | Accounts Receivable The Company extends credit to its business and residential customers based upon a written credit policy. Service interruption is the primary vehicle for controlling losses. Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate for the amount of probable credit losses in the Company’s existing accounts receivable. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other information. Receivable balances are reviewed on an aged basis and account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventory, Policy [Policy Text Block] | Materials and Supplies Materials and supplies are stated at the lower of cost or market value. Cost is determined using an average cost basis. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Regulated property and equipment is stated at original cost less any impairment. Unregulated property and equipment purchased through acquisitions is stated at its fair value at the date of acquisition less any impairment. Expenditures for improvements that significantly add to productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed when incurred. Depreciation of regulated property and equipment is computed principally using the straight-line method over useful lives determined by the APSC for Alabama locations, while the other regulated locations use similar useful lives as Alabama. Depreciation of unregulated property and equipment primarily employs the straight-line method over industry standard estimated useful lives. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company reviews its long-lived assets for impairment at each balance sheet date and whenever events or changes in circumstances indicate that the carrying amount of an asset should be assessed. To determine if impairment exists, the Company estimates the future undiscounted cash flows expected to result from the use of the asset being reviewed for impairment. If the sum of these expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss in accordance with guidance included in ASC 360, Property, Plant, and Equipment |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing and loan costs consist of debt issuance costs incurred in obtaining long-term financing, which are amortized using the effective interest method. Amortization of deferred financing and loan costs is classified as “Interest expense”. When amendments to debt agreements are considered to extinguish existing debt per guidance included in ASC 470, Debt |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using the asset and liability approach in accordance with guidance included in ASC 740, Income Taxes 740”). The provision for income taxes consists of an amount for the taxes currently payable and a provision for the tax consequences deferred to future periods. Interest and penalties related to income tax matters would be recognized in income tax expense. As of December 31, 2016, no The Company conducts business in multiple jurisdictions and, as a result, one 2013 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaids, accounts payable and accrued liabilities, approximate their fair values as of December 31, 2016 2015 December 31, 2016 2015 |
Earnings Per Share, Policy [Policy Text Block] | Income per Common Share The Company computes net income per common share in accordance with the provisions included in ASC 260, Earnings per Share 260”). 260, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In April 2015, 2015 03, Interest–Imputation of Interest (Subtopic 835 30): first December 15, 2015. March 31, 2016. 8 In March 2016, 2016 09 , Compensation–Stock Compensation (Topic 718): December 15, 2016, March 31, 2016 Recent Accounting Pronouncements During 2015 2016, 2015 01 2015 17 2016 01 2016 20, , 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 May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606) 2014 09”). December 15, 2016, July 2015, 2015 14, Revenue from Contracts with Customers (Topic 606): eferral of the Effective Date. 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, January 2017, 2017 03, Accounting Changes and Error Corrections (Topic 250) 323) 2017 03”). 2014 09 2014 09 2014 09 2014 09 2014 09 In November 2015, 2015 17, Income Taxes (Topic 740): . This ASU provides guidance that simplifies the presentation of deferred income taxes. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, In February 2016, 2016 02, Leases (Topic 842) 2016 02”) . December 15, 2018, In January 2017, 2017 03, 2016 02 2016 02 In August 2016, 2016 15 , Statement of Cash Flows (Topic 230): 230, December 15, 2017, |
Note 4 - Goodwill and Intangi24
Note 4 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2015 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (21,685 ) $ 2,340 Contract relationships 19,600 (19,600 ) - Non-competition 107 (95 ) 12 Trade name 23 (12 ) 11 Total $ 43,755 $ (41,392 ) $ 2,363 December 31, 2016 Carrying Value Accumulated Amortization Net Book Value Customer relationships $ 24,025 $ (22,254 ) $ 1,771 Contract relationships 19,600 (19,600 ) - Non-competition 107 (101 ) 6 Trade name 23 (15 ) 8 Total $ 43,755 $ (41,970 ) $ 1,785 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2014 $ 1,258 2015 $ 815 2016 $ 578 2017 $ 458 2018 408 2019 389 2020 372 2021 158 Total $ 1,785 |
Note 5 - Property and Equipme25
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Estimated December 31, Life 2016 2015 Land $ 1,164 $ 1,164 Building and improvements 20 - 40 12,812 12,723 Telephone equipment 6 - 20 234,422 233,099 Cable television equipment 7 12,199 12,129 Furniture and equipment 8 - 14 3,067 3,045 Vehicles 7 - 9 6,855 6,516 Computer software equipment 5 - 7 16,648 16,251 Internet equipment 5 3,891 3,797 Total property and equipment 291,058 288,724 Accumulated depreciation and amortization (241,787 ) (238,913 ) Net property and equipment $ 49,271 $ 49,811 |
Note 6 - Other Accounts Recei26
Note 6 - Other Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2016 2015 Carrier access bills receivable $ 380 $ 570 NECA receivable 1,028 1,030 Receivables from Alabama Service Fund 56 59 Other miscellaneous 64 63 $ 1,528 $ 1,722 |
Note 7 - Investments (Tables)
Note 7 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Investment [Table Text Block] | December 31, 2016 2015 Investment in CoBank stock $ 1,475 $ 1,475 Rental property 271 296 Other miscellaneous 75 75 $ 1,821 $ 1,846 |
Note 8 - Notes Payable (Tables)
Note 8 - Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, December 31, 2016 2015 Third amended and restated term credit facility with Antares Capital; variable interest rate of 6.50% at December 31, 2015. The Previous Credit Facility was secured by the total assets of the subsidiary guarantors.The Previous Credit Facility was fully repaid on February 17, 2016. $ - $ 99,255 Less: Current portion of long-term debt, net of debt issuance cost of $0 and $797, respectively - (2,203 ) $ - $ 97,052 December 31, December 31, 2015 Subordinated Loan Agreement with New Spring Mezzanine Capital III, L.P.; fixed interest rate due monthly of 12.00% at December 31, 2016. Payment in Kind (“PIK”) interest rate of 2.00% per annum. PIK interest accrued is added to the principal amount then outstanding on the last business day of each quarter. The unpaid balance is due August 17, 2021. $ 15,300 $ - PIK interest added to principal 273 - Less: Long-term portion of debt issuance cost (753 ) - Long-term notes payable, net of debt issuance cost $ 14,820 $ - |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2017 $ 4,000 2018 4,000 2019 4,000 2020 4,000 2021 81,300 Total $ 97,300 |
Senior Notes [Member] | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | Current Long-Term December 31, December 31, Senior Loan Agreement with Cerberus Business Finance, LLC; variable interest rate of 8.75% at December 31, 2016, interest is monthly, paid in arrears on the first business day of each month. The Senior Loan Agreement is secured by the total assets of the subsidiary guarantors. The unpaid balance is due February 17, 2021. $ 7,125 $ 74,875 $ 82,000 $ - Debt issuance cost (1,054 ) (2,835 ) (3,889 ) - Senior notes payable, net of debt issuance cost $ 6,071 $ 72,040 $ 78,111 $ - |
Note 10 - Income Tax (Tables)
Note 10 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Years Ended December 31, 2016 2015 2014 Federal income taxes Current $ 1,176 $ 2,552 $ 230 Deferred 1,872 1,661 2,380 Total federal tax expense 3,048 4,213 2,610 State income taxes Current 308 366 14 Deferred 302 365 561 Total state tax expense 610 731 575 Total income tax expense $ 3,658 $ 4,944 $ 3,185 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2016 2015 Deferred tax liabilities: Amortization $ (16,588 ) $ (16,107 ) Depreciation (11,966 ) (10,541 ) Prepaid expense (444 ) (415 ) State net operating loss carryforwards and adjustments (279 ) (49 ) Other (13 ) (13 ) Total deferred tax liabilities $ (29,290 ) $ (27,125 ) Deferred tax assets: Deferred compensation $ 232 $ 234 Advance payments 245 266 Bad debt 121 169 Other 412 350 Total net deferred tax assets $ 1,010 $ 1,019 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Years Ended December 31, 2016 2015 2014 Federal income tax at statutory rate 35 % 35 % 35 % Federal income tax provision at statutory rate $ 3,081 $ 4,349 $ 2,875 State income tax provision, net of federal income tax effects 397 475 339 Other 180 120 (29 ) Provision for income taxes $ 3,658 $ 4,944 $ 3,185 Effective income tax rate 41.5 % 39.8 % 38.8 % |
Note 12 - Net Income Per Comm30
Note 12 - Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended December 31, 2016 2015 2014 Weighted average number of common shares outstanding - basic 3,283,177 3,239,306 3,103,728 Effect of dilutive securities 121,519 74,335 64,433 Weighted average number of common shares and potential common shares - diluted 3,404,696 3,313,641 3,168,161 Net income $ 5,146 $ 7,484 $ 5,029 Net income per common share - basic $ 1.57 $ 2.31 $ 1.62 Net income per common share - diluted $ 1.51 $ 2.26 $ 1.59 |
Note 13 - Fair Value Measurem31
Note 13 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Previous Credit Facility Carrying Value Fair Value Notes payable December 31, 2015 $ 100,052 $ 102,076 Notes payable December 31, 2016 $ - $ - Senior Loan Agreement Carrying Value Fair Value Notes payable December 31, 2015 $ - $ - Notes payable December 31, 2016 $ 82,000 $ 83,989 Subordinated Loan Agreement Carrying Value Fair Value Notes payable December 31, 2015 $ - $ - Notes payable December 31, 2016 $ 15,573 $ 15,605 |
Note 14 - Commitments and Con32
Note 14 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2017 $ 521 2018 521 2019 497 2020 474 2021 437 Thereafter 930 Total $ 3,380 |
Note 15 - Stock Plans and Sto33
Note 15 - Stock Plans and Stock Associated with Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Grant Date RSUs Fair Value Outstanding at December 31, 2015 155,761 $ 4.78 Granted 119,655 $ 4.40 Vested (65,301 ) $ 4.75 Forfeited or cancelled (6,475 ) $ 4.71 Outstanding at December 31, 2016 203,640 $ 4.57 |
Note 16 - Selected Quarterly 34
Note 16 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2015: Revenue $ 17,643 $ 17,892 $ 17,850 $ 17,717 Operating income $ 4,508 $ 4,765 $ 4,910 $ 5,072 Net income $ 2,135 $ 1,655 $ 1,850 $ 1,844 Net income per common share - basic $ 0.66 $ 0.51 $ 0.57 $ 0.57 Net income per common share - diluted $ 0.65 $ 0.50 $ 0.56 $ 0.54 Fiscal 2016: Revenue $ 17,490 $ 17,232 $ 17,389 $ 16,833 Operating income $ 4,746 $ 4,899 $ 4,561 $ 4,607 Net income $ 1,750 $ 1,324 $ 1,125 $ 947 Net income per common share - basic $ 0.53 $ 0.40 $ 0.34 $ 0.30 Net income per common share - diluted $ 0.52 $ 0.39 $ 0.33 $ 0.27 |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) $ in Thousands | Feb. 17, 2016USD ($) | Jan. 25, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Number of Reportable Segments | 1 | |||
Debt Issuance Costs, Net | $ 15 | |||
Write off of Deferred Debt Issuance Cost | 140 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument, Term | 5 years | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | 5,000 | ||
Senior Notes [Member] | ||||
Debt Instrument, Term | 5 years | |||
Debt Instrument, Face Amount | $ 85,000 | |||
Proceeds from Issuance of Debt | $ 85,000 | |||
Debt Instrument, Periodic Payment | 1,000 | |||
Debt Issuance Costs, Net | $ 3,889 | |||
Subordinated Debt [Member] | ||||
Debt Instrument, Term | 5 years 182 days | |||
Debt Instrument, Face Amount | 15,300 | $ 15,000 | ||
Proceeds from Issuance of Debt | $ 15,300 |
Note 2 - Summary of Significa36
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Percentage of Net Property, Plant, and Equipment Accounted for Under ASC980 | 77.00% | 76.50% | |
Authorized Rate of Return, Reduction in Period | 0.25% | ||
Deferred Revenue | $ 628 | $ 681 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | ||
Sales Revenue, Services, Net [Member] | |||
Concentration Risk, Percentage | 18.60% | 17.40% | 15.50% |
Note 3 - Impairments (Details T
Note 3 - Impairments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 |
Note 4 - Goodwill and Intangi38
Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | $ 44,976 | $ 44,976 |
Goodwill, Impairment Loss | $ 0 | 0 |
Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Alabama [Member | ||
Percent of Goodwill | 87.20% | |
Goodwill | $ 39,199 | 0 |
Goodwill, Period Increase (Decrease) | $ 0 | 0 |
Missouri [Member] | ||
Percent of Goodwill | 12.80% | |
Goodwill | $ 5,758 | 0 |
Goodwill, Period Increase (Decrease) | $ 0 | 0 |
New England [Member] | ||
Percent of Goodwill | 1.00% | |
Goodwill | $ 19 | 0 |
Goodwill, Period Increase (Decrease) | $ 0 | $ 0 |
Note 4 - Goodwill and Intangi39
Note 4 - Goodwill and Intangible Assets - Intangible Asset Summaries (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Value | $ 43,755 | $ 43,755 |
Accumulated Amortization | (41,970) | (41,392) |
Net Book Value | 1,785 | 2,363 |
Customer Relationships [Member] | ||
Carrying Value | 24,025 | 24,025 |
Accumulated Amortization | (22,254) | (21,685) |
Net Book Value | 1,771 | 2,340 |
Customer Contracts [Member] | ||
Carrying Value | 19,600 | 19,600 |
Accumulated Amortization | (19,600) | (19,600) |
Net Book Value | ||
Noncompete Agreements [Member] | ||
Carrying Value | 107 | 107 |
Accumulated Amortization | (101) | (95) |
Net Book Value | 6 | 12 |
Trade Names [Member] | ||
Carrying Value | 23 | 23 |
Accumulated Amortization | (15) | (12) |
Net Book Value | $ 8 | $ 11 |
Note 4 - Goodwill and Intangi40
Note 4 - Goodwill and Intangible Assets - Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
2,014 | $ 578 | $ 815 | $ 1,258 |
2,017 | 458 | ||
2,018 | 408 | ||
2,019 | 389 | ||
2,020 | 372 | ||
2,021 | 158 | ||
Total | $ 1,785 | $ 2,363 |
Note 5 - Property and Equipme41
Note 5 - Property and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation | $ 7,137 | $ 7,678 | $ 8,941 |
Amortization | 885 | 1,200 | 1,642 |
Telephone Plant Adjustment [Member] | |||
Amortization | $ 307 | $ 385 | $ 385 |
Note 5 - Property and Equipme42
Note 5 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant and Equipment, Gross | $ 291,058 | $ 288,724 |
Accumulated depreciation and amortization | (241,787) | (238,913) |
Net property and equipment | 49,271 | 49,811 |
Land [Member] | ||
Property Plant and Equipment, Gross | 1,164 | 1,164 |
Building Improvements [Member] | ||
Property Plant and Equipment, Gross | $ 12,812 | 12,723 |
Building Improvements [Member] | Minimum [Member] | ||
Estimated Life (Year) | 20 years | |
Building Improvements [Member] | Maximum [Member] | ||
Estimated Life (Year) | 40 years | |
Telephone Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 234,422 | 233,099 |
Telephone Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 6 years | |
Telephone Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 20 years | |
Cable Television Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 12,199 | 12,129 |
Estimated Life (Year) | 7 years | |
Furniture and Fixtures [Member] | ||
Property Plant and Equipment, Gross | $ 3,067 | 3,045 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated Life (Year) | 8 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Estimated Life (Year) | 14 years | |
Vehicles [Member] | ||
Property Plant and Equipment, Gross | $ 6,855 | 6,516 |
Vehicles [Member] | Minimum [Member] | ||
Estimated Life (Year) | 7 years | |
Vehicles [Member] | Maximum [Member] | ||
Estimated Life (Year) | 9 years | |
Computer Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 16,648 | 16,251 |
Computer Equipment [Member] | Minimum [Member] | ||
Estimated Life (Year) | 5 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Estimated Life (Year) | 7 years | |
Internet Equipment [Member] | ||
Property Plant and Equipment, Gross | $ 3,891 | $ 3,797 |
Estimated Life (Year) | 5 years |
Note 6 - Other Accounts Recei43
Note 6 - Other Accounts Receivable - Schedule of Other Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Receivables | $ 1,528 | $ 1,722 |
Carrier Access Bills Receivable [Member] | ||
Other Receivables | 380 | 570 |
NECA Receivable [Member] | ||
Other Receivables | 1,028 | 1,030 |
Receivables from Alabama Service Fund [Member] | ||
Other Receivables | 56 | 59 |
Other Miscellaneous [Member] | ||
Other Receivables | $ 64 | $ 63 |
Note 7 - Investments - Schedule
Note 7 - Investments - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments | $ 1,821 | $ 1,846 |
CoBank Stock, at Cost [Member] | ||
Investments | 1,475 | 1,475 |
Rental Property [Member] | ||
Investments | 271 | 296 |
Other Miscellaneous Investments [Member] | ||
Investments | $ 75 | $ 75 |
Note 8 - Notes Payable (Details
Note 8 - Notes Payable (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 25, 2016 | |
Amortization of Debt Issuance Costs | $ 1,242 | $ 880 | $ 936 | |
Write off of Deferred Debt Issuance Cost | 140 | |||
Notes Payable, Net [Member] | ||||
Debt Issuance Costs, Gross | 5,758 | |||
Previous Credit Facility [Member] | ||||
Debt Issuance Costs, Gross | 2,700 | |||
Amortization of Debt Issuance Costs | 141 | 880 | ||
Write off of Deferred Debt Issuance Cost | 140 | |||
Legal Fees | $ 15 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||
Line of Credit Facility, Commitment Fee Amount | $ 3 | 25 | ||
Long-term Line of Credit | $ 0 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | $ 5,000 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.75% | |||
Line of Credit Facility, Commitment Fee Amount | $ 33 | |||
Long-term Line of Credit | 0 | |||
Senior Notes [Member] | ||||
Debt Issuance Costs, Gross | 4,900 | |||
Amortization of Debt Issuance Costs | 978 | |||
Subordinated Debt [Member] | ||||
Debt Issuance Costs, Gross | 892 | |||
Amortization of Debt Issuance Costs | 139 | |||
Accrued Paid-in-Kind Interest, Payment at Maturity | $ 1,772 |
Note 8 - Notes Payable - Summar
Note 8 - Notes Payable - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term debt | $ 97,300 | ||
Less: Current portion of long-term debt, net of debt issuance cost of $0 and $797, respectively | (6,071) | $ (2,203) | |
Senior notes payable, net of debt issuance cost | 86,860 | 97,052 | |
Payment in kind interest - subordinated debt | 273 | ||
Subordinated Debt [Member] | |||
Long-term debt | 15,300 | ||
Payment in kind interest - subordinated debt | 273 | ||
Debt issuance cost | (753) | ||
Long-term notes payable, net of debt issuance cost | 14,820 | ||
Previous Credit Facility [Member] | |||
Long-term debt | 99,255 | ||
Less: Current portion of long-term debt, net of debt issuance cost of $0 and $797, respectively | (2,203) | ||
Senior notes payable, net of debt issuance cost | $ 97,052 |
Note 8 - Notes Payable - Summ47
Note 8 - Notes Payable - Summary of Notes Payable (Details) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Interest Rate | 0.00% | 6.50% |
Previous Credit Facility [Member] | ||
Issuance costs, net | $ 0 | $ 797 |
Note 8 - Notes Payable - Senior
Note 8 - Notes Payable - Senior Loan Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt issuance cost | $ (15) | |
Senior notes payable, net of debt issuance cost | 6,071 | $ 2,203 |
Senior notes payable, net of debt issuance cost | 86,860 | 97,052 |
Senior Notes [Member] | ||
Senior note payable, current | 7,125 | |
Senior note payable, long-term | 74,875 | |
Senior note payable, face amount | 82,000 | |
Debt issuance cost | (1,054) | |
Debt issuance cost | (2,835) | |
Debt issuance cost | (3,889) | |
Senior notes payable, net of debt issuance cost | 6,071 | |
Senior notes payable, net of debt issuance cost | 72,040 | |
Senior notes payable, net of debt issuance cost | $ 78,111 |
Note 8 - Notes Payable - Maturi
Note 8 - Notes Payable - Maturities of Notes Payable (Details) $ in Millions | Dec. 31, 2016USD ($) |
2,017 | $ 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
2,021 | 81.3 |
Total | $ 97.3 |
Note 9 - Acquisition (Details T
Note 9 - Acquisition (Details Textual) $ in Millions | Jan. 02, 2014USD ($) |
Reliable Networks [Member] | |
Payments to Acquire Businesses, Gross | $ 0.5 |
Note 10 - Income Tax (Details T
Note 10 - Income Tax (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent | 41.50% | 39.80% | 38.80% |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 0 | $ 0 | |
Deferred Tax Assets, Valuation Allowance | $ 0 | ||
Earliest Tax Year [Member] | |||
Open Tax Year | 2,013 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards | $ 0 | 0 | |
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards | $ 25,000 | $ 68,000 |
Note 10 - Income Tax - Tax Effe
Note 10 - Income Tax - Tax Effects of Temporary Differences (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal income taxes | |||
Current | $ 1,176 | $ 2,552 | $ 230 |
Deferred | 1,872 | 1,661 | 2,380 |
Total federal tax expense | 3,048 | 4,213 | 2,610 |
State income taxes | |||
Current | 308 | 366 | 14 |
Deferred | 302 | 365 | 561 |
Total state tax expense | 610 | 731 | 575 |
Total income tax expense | $ 3,658 | $ 4,944 | $ 3,185 |
Note 10 - Income Taxes - Deferr
Note 10 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax liabilities: | ||
Amortization | $ (16,588) | $ (16,107) |
Depreciation | (11,966) | (10,541) |
Prepaid expense | (444) | (415) |
State net operating loss carryforwards and adjustments, liabilties | (279) | (49) |
Other | (13) | (13) |
Total deferred tax liabilities | (29,290) | (27,125) |
Deferred tax assets: | ||
Deferred compensation | 232 | 234 |
Advance payments | 245 | 266 |
Bad debt | 121 | 169 |
Other | 412 | 350 |
Total net deferred tax assets | $ 1,010 | $ 1,019 |
Note 10 - Effective Income Tax
Note 10 - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Federal income tax provision at statutory rate | $ 3,081 | $ 4,349 | $ 2,875 |
State income tax provision, net of federal income tax effects | 397 | 475 | 339 |
Other | 180 | 120 | (29) |
Provision for income taxes | $ 3,658 | $ 4,944 | $ 3,185 |
Effective Income Tax Rate Reconciliation, Percent | 41.50% | 39.80% | 38.80% |
Note 11 - Employee Benefit Pr55
Note 11 - Employee Benefit Program (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,000 | $ 18,000 | $ 17,500 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% |
Defined Contribution Plan, Cost Recognized | $ 508,000 | $ 520,000 | $ 494,000 |
BTC [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.50% | 4.50% | 4.50% |
Multiemployer Plan, Period Contributions | $ 0 | $ 0 | $ 0 |
Defined Contribution Plan, Cost Recognized | $ 16,000 | $ 15,000 | $ 15,000 |
Defined Contribution Plan, Minimum Annual Contributions Per Employee, Percent | 1.00% |
Note 12 - Net Income Per Comm56
Note 12 - Net Income Per Common Share - Reconciliation of Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average number of common shares outstanding - basic (in shares) | 3,283,177 | 3,239,306 | 3,103,728 | ||||||||
Effect of dilutive securities (in shares) | 121,519 | 74,335 | 64,433 | ||||||||
Weighted average number of common shares and potential common shares - diluted (in shares) | 3,404,696 | 3,313,641 | 3,168,161 | ||||||||
Net income | $ 947 | $ 1,125 | $ 1,324 | $ 1,750 | $ 1,844 | $ 1,850 | $ 1,655 | $ 2,135 | $ 5,146 | $ 7,484 | $ 5,029 |
Net income per common share - basic (in dollars per share) | $ 0.30 | $ 0.34 | $ 0.40 | $ 0.53 | $ 0.57 | $ 0.57 | $ 0.51 | $ 0.66 | $ 1.57 | $ 2.31 | $ 1.62 |
Net income per common share - diluted (in dollars per share) | $ 0.27 | $ 0.33 | $ 0.39 | $ 0.52 | $ 0.54 | $ 0.56 | $ 0.50 | $ 0.65 | $ 1.51 | $ 2.26 | $ 1.59 |
Note 13 - Fair Value Measurem57
Note 13 - Fair Value Measurement - Fair Value of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term debt | $ 97,300 | |
Subordinated Debt [Member] | ||
Long-term debt | 15,300 | |
Previous Credit Facility [Member] | ||
Long-term debt | 99,255 | |
Reported Value Measurement [Member] | Senior Notes [Member] | ||
Long-term debt | 82,000 | |
Reported Value Measurement [Member] | Subordinated Debt [Member] | ||
Long-term debt | 15,573 | |
Reported Value Measurement [Member] | Previous Credit Facility [Member] | ||
Long-term debt | 100,052 | |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | ||
Long-term debt | 83,989 | |
Estimate of Fair Value Measurement [Member] | Subordinated Debt [Member] | ||
Long-term debt | 15,605 | |
Estimate of Fair Value Measurement [Member] | Previous Credit Facility [Member] | ||
Long-term debt | $ 102,076 |
Note 14 - Commitments and Con58
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense, Net | $ 562 | $ 582 | $ 616 |
Note 14 - Commitments and Con59
Note 14 - Commitments and Contingencies - Minimum Future Rental Payments Under Non-Cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 521 |
2,018 | 521 |
2,019 | 497 |
2,020 | 474 |
2,021 | 437 |
Thereafter | 930 |
Total | $ 3,380 |
Note 15 - Stock Plans and Sto60
Note 15 - Stock Plans and Stock Associated with Acquisition (Details Textual) - USD ($) $ in Thousands | May 12, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
Allocated Share-based Compensation Expense | $ 415 | $ 362 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 503 | 470 | $ 470 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 172 | $ 144 | |||
Common Class A [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 0 | 0 | |||
Common Class A [Member] | Reliable Networks [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 68,233 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 65,301 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 119,655 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 203,640 | 155,761 | 155,761 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | ||||
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] | Common Class A [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 90,940 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 119,655 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 203,640 |
Note 15 - Stock Plans and Sto61
Note 15 - Stock Plans and Stock Associated with Acquisition - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Outstanding at December 31, 2015 (in shares) | shares | 155,761 |
Outstanding at December 31, 2015 (in dollars per share) | $ / shares | $ 4.78 |
Granted (in shares) | shares | 119,655 |
Granted (in dollars per share) | $ / shares | $ 4.40 |
Vested (in shares) | shares | (65,301) |
Vested (in dollars per share) | $ / shares | $ 4.75 |
Forfeited or cancelled (in shares) | shares | (6,475) |
Forfeited or cancelled (in dollars per share) | $ / shares | $ 4.71 |
Outstanding at December 31, 2016 (in shares) | shares | 203,640 |
Outstanding at December 31, 2016 (in dollars per share) | $ / shares | $ 4.57 |
Note 16 - Selected Quarterly 62
Note 16 - Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | $ 16,833 | $ 17,389 | $ 17,232 | $ 17,490 | $ 17,717 | $ 17,850 | $ 17,892 | $ 17,643 | $ 68,944 | $ 71,102 | $ 73,870 |
Operating income | 4,607 | 4,561 | 4,899 | 4,746 | 5,072 | 4,910 | 4,765 | 4,508 | 18,813 | 19,255 | 16,858 |
Net income | $ 947 | $ 1,125 | $ 1,324 | $ 1,750 | $ 1,844 | $ 1,850 | $ 1,655 | $ 2,135 | $ 5,146 | $ 7,484 | $ 5,029 |
Net income per common share - basic (in dollars per share) | $ 0.30 | $ 0.34 | $ 0.40 | $ 0.53 | $ 0.57 | $ 0.57 | $ 0.51 | $ 0.66 | $ 1.57 | $ 2.31 | $ 1.62 |
Net income per common share - diluted (in dollars per share) | $ 0.27 | $ 0.33 | $ 0.39 | $ 0.52 | $ 0.54 | $ 0.56 | $ 0.50 | $ 0.65 | $ 1.51 | $ 2.26 | $ 1.59 |