Hawaiian Telcom Holdco (HCOM) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 04, 2015
Document and Entity Information
Entity Registrant Name	Hawaiian Telcom Holdco, Inc.
Entity Central Index Key	1,487,986
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,007,318
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Income
Operating revenues	$ 96,187	$ 96,784	$ 193,303	$ 193,856
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	39,219	41,288	79,402	82,236
Selling, general and administrative	29,767	28,720	59,499	57,986
Depreciation and amortization	21,941	18,884	43,221	37,604
Total operating expenses	90,927	88,892	182,122	177,826
Operating income	5,260	7,892	11,181	16,030
Other income (expense):
Interest expense	(4,166)	(4,109)	(8,503)	(8,298)
Interest income and other	4	5	11	13
Total other expense	(4,162)	(4,104)	(8,492)	(8,285)
Income before income tax provision	1,098	3,788	2,689	7,745
Income tax provision	643	1,549	1,257	3,141
Net income	$ 455	$ 2,239	$ 1,432	$ 4,604
Net income per common share -
Basic (in dollars per share)	$ 0.04	$ 0.21	$ 0.13	$ 0.44
Diluted (in dollars per share)	$ 0.04	$ 0.20	$ 0.13	$ 0.41
Weighted average shares used to compute net income per common share -
Basic (in shares)	10,797,111	10,585,736	10,744,944	10,557,047
Diluted (in shares)	11,258,178	11,263,618	11,261,535	11,300,608

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 455	$ 2,239	$ 1,432	$ 4,604
Other comprehensive income (loss) -
Unrealized holding gains (losses) arising during period	(2)	2		(1)
Retirement plan gain (loss)	4,093	44	2,075	(245)
Income tax credit (charge) on comprehensive income	(1,571)	(17)	(792)	100
Other comprehensive income (loss), net of tax	2,520	29	1,283	(146)
Comprehensive income	$ 2,975	$ 2,268	$ 2,715	$ 4,458

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 28,228	$ 39,885
Receivables, net	34,053	32,662
Material and supplies	9,792	9,337
Prepaid expenses	5,334	3,598
Deferred income taxes	6,840	6,840
Other current assets	3,289	3,481
Total current assets	87,536	95,803
Property, plant and equipment, net	570,667	565,956
Intangible assets, net	36,079	37,328
Goodwill	12,104	12,104
Deferred income taxes	79,213	81,626
Other assets	10,513	9,151
Total assets	796,112	801,968
Current liabilities
Current portion of long-term debt	3,000	3,000
Accounts payable	45,797	50,499
Accrued expenses	16,102	19,399
Advance billings and customer deposits	15,354	14,686
Other current liabilities	7,488	6,790
Total current liabilities	87,741	94,374
Long-term debt	288,307	289,423
Employee benefit obligations	93,728	99,366
Other liabilities	15,774	14,271
Total liabilities	$ 485,550	$ 497,434
Commitments and contingencies (Note 11)
Stockholders' equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,005,434 and 10,673,292 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 110	$ 107
Additional paid-in capital	173,831	170,521
Accumulated other comprehensive loss	(22,664)	(23,947)
Retained earnings	159,285	157,853
Total stockholders' equity	310,562	304,534
Total liabilities and stockholders' equity	$ 796,112	$ 801,968

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	11,005,434	10,673,292
Common stock, shares outstanding	11,005,434	10,673,292

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 1,432	$ 4,604
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	43,221	37,604
Employee retirement benefits	(3,565)	(6,494)
Provision for uncollectibles	1,634	1,478
Stock based compensation	900	2,099
Deferred income taxes	1,621	3,544
Changes in operating assets and liabilities:
Receivables	(3,025)	979
Material and supplies	(92)	121
Prepaid expenses and other current assets	(1,944)	(2,090)
Accounts payable and accrued expenses	(2,037)	(3,896)
Advance billings and customer deposits	668	(181)
Other current liabilities	(465)	113
Other	1,445	758
Net cash provided by operating activities	39,793	38,639
Cash flows from investing activities:
Capital expenditures	(52,916)	(51,315)
Funds released from restricted cash account	400
Net cash used in investing activities	(52,516)	(51,315)
Cash flows from financing activities:
Proceeds from stock issuance	3,341
Proceeds from installment financing	2,279	2,085
Repayment of capital lease and installment financing	(1,976)	(856)
Repayment of debt	(1,500)	(1,500)
Refinancing costs	(150)
Taxes paid related to net share settlement of equity awards	(928)	(1,005)
Net cash provided by (used in) financing activities	1,066	(1,276)
Net change in cash and cash equivalents	(11,657)	(13,952)
Cash and cash equivalents, beginning of period	39,885	49,551
Cash and cash equivalents, end of period	28,228	35,599
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	$ 7,604	$ 7,433

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Dec. 31, 2013	$ 105	$ 167,869	$ (4,716)	$ 149,754	$ 313,012
Balance (in shares) at Dec. 31, 2013	10,495,856
Increase (Decrease) in Stockholders' Equity
Stock based compensation		2,099			$ 2,099
Exercise of warrant agreement (in shares)	15,361				15,361
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes	$ 1	(1,006)			$ (1,005)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	74,824
Net income				4,604	4,604
Other comprehensive income (loss), net of tax			(146)		(146)
Balance at Jun. 30, 2014	$ 106	168,962	(4,862)	154,358	318,564
Balance (in shares) at Jun. 30, 2014	10,586,041
Balance at Dec. 31, 2014	$ 107	170,521	(23,947)	157,853	304,534
Balance (in shares) at Dec. 31, 2014	10,673,292
Increase (Decrease) in Stockholders' Equity
Stock based compensation		900			900
Exercise of warrant agreement	$ 2	3,339			$ 3,341
Exercise of warrant agreement (in shares)	260,068				21,371
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes	$ 1	(929)			$ (928)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	72,074
Net income				1,432	1,432
Other comprehensive income (loss), net of tax			1,283		1,283
Balance at Jun. 30, 2015	$ 110	$ 173,831	$ (22,664)	$ 159,285	$ 310,562
Balance (in shares) at Jun. 30, 2015	11,005,434

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2015
Description of Business
Description of Business	1. Description of Business Business Description Hawaiian Telcom Holdco, Inc. and subsidiaries (the “Company”) is the incumbent local exchange carrier for the State of Hawaii with an integrated telecommunications network. The Company offers a variety of telecommunication services to residential and business customers in Hawaii including local telephone, network access and data transport, television, Internet, long distance and wireless phone service. The Company also provides communications equipment sales and maintenance, data center colocation and network managed services. Organization The Company has one direct wholly-owned subsidiary, Hawaiian Telcom Communications, Inc. which has two direct wholly-owned subsidiaries — Hawaiian Telcom, Inc. and Hawaiian Telcom Services Company, Inc. Hawaiian Telcom, Inc. operates the regulated local exchange carrier and Hawaiian Telcom Services Company, Inc. operates all other businesses.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America and pursuant to rules and regulations of the U.S. Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted and condensed. In the opinion of the Company’s management, all adjustments (consisting of only normal and recurring accruals) have been made to present fairly the results of operations, comprehensive income, financial position and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. Although the Company believes that the disclosures are adequate to make the information presented not misleading, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2014. Cash and Cash Equivalents Cash and cash equivalents include cash and money market accounts with maturities at acquisition of three months or less. The majority of cash balances at June 30, 2015 are held in one bank in demand deposit accounts. During the six months ended June 30, 2015, funds amounting to $0.4 million in a restricted cash account held in conjunction with a lease agreement provision were released and deposited into unrestricted cash. Supplemental Non-Cash Investing and Financing Activities Accounts payable included $15.2 million and $13.6 million at June 30, 2015 and 2014, respectively, for additions to property, plant and equipment. Taxes Collected from Customers The Company presents taxes collected from customers and remitted to governmental authorities on a gross basis, including such amounts in the Company’s reported operating revenues. Such amounts represent primarily Hawaii state general excise taxes and Hawaii Public Utility Commission fees. Such taxes and fees amounted to $2.0 million and $4.0 million for the three and six months ended June 30, 2015, and $1.8 million and $3.6 million for the three and six months ended June 30, 2014, respectively. Earnings per Share Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing earnings by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing earnings, adjusted for the effect, if any, from assumed conversion of all potentially dilutive common shares outstanding, by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. The denominator used to compute basic and diluted earnings per share was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share - weighted average shares Effect of dilutive securities: Employee and director restricted stock units Warrants Diluted earnings per share - weighted average shares The computation of weighted average dilutive shares outstanding excluded grants of restricted stock units convertible into 22,825 shares of common stock for the three months ended June 30, 2015, and 85,074 shares and 34,721 shares of common stock for the three and six month periods ended June 30, 2014, respectively. The unrecognized compensation on a per unit basis for these restricted stock units was greater than the average market price of the Company’s common stock for the periods presented. Therefore, the effect would be anti-dilutive. For the six months ended June 30, 2015, there were no restricted stock units that were anti-dilutive to earnings per share. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which provides guidance for revenue recognition which was amended in July 2015. The new accounting standard will supersede the current revenue recognition requirements and most industry-specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for the Company in the first quarter of 2018 and either full retrospective or modified retrospective adoption is permitted. Early adoption is permitted from the first quarter of 2017. The Company is currently evaluating the impact of the adoption of this accounting standard on the Company’s financial position, results of operations and cash flows. In August 2014, the FASB issued an accounting standard with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standard is effective for fiscal years and interim periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of adoption of this accounting standard. In April 2015, the FASB issued an accounting standard simplifying the presentation of debt issuance costs. The new standard requires 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 that debt liability which is consistent with debt discounts. The standard requires retrospective adoption and will be effective beginning in the first quarter of 2016 for the Company. Early adoption is permitted. The Company is currently evaluating the impact and timing of adopting this new accounting standard and the impact it will have on the Company’s financial position, results of operations and cash flows.

Receivables

Receivables	6 Months Ended
	Jun. 30, 2015
Receivables
Receivables	3. Receivables Receivables consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Customers and other $ $ Allowance for doubtful accounts ) ) $ $

Long-Lived Assets

Long-Lived Assets	6 Months Ended
	Jun. 30, 2015
Long-Lived Assets
Long-Lived Assets	4. Long-Lived Assets Property, plant and equipment consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Property, plant and equipment $ $ Less accumulated depreciation ) ) $ $ Depreciation expense amounted to $21.3 million and $42.0 million for the three and six months ended June 30, 2015, respectively. Depreciation expense amounted to $18.2 million and $36.2 million for the three and six months ended June 30, 2014, respectively. The gross carrying amount and accumulated amortization of identifiable intangible assets are as follows (dollars in thousands): June 30, 2015 December 31, 2014 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Subject to amortization — Customer relationships $ $ $ $ $ $ Trade name and other Not subject to amortization — Brand name — — — — $ $ $ $ $ $ Amortization expense amounted to $0.6 million and $1.2 million for the three and six months ended June 30, 2015, respectively. Amortization expense amounted to $0.7 million and $1.4 million for the three and six months ended June 30, 2014, respectively. Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): 2015 (remaining months) $ 2016 2017 2018 2019 Thereafter $

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2015
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	5. Accrued Expenses and Other Current Liabilities Accrued expenses consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Salaries and benefits $ $ Interes Other taxes $ $ Other current liabilities consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Other postretirement benefits, current $ $ Installment financing contracts, current Other $ $

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Long Term Debt
Long-Term Debt	6. Long-Term Debt Long-term debt consisted of the following (dollars in thousands): Interest Rate at June 30, Final June 30, December 31, 2015 Maturity 2015 2014 Term loan % June 6, 2019 $ $ Original issue discount ) ) Current Noncurrent $ $ The term loan outstanding at June 30, 2015 provides for interest at the Alternate Base Rate, a rate which is indexed to the prime rate with certain adjustments as defined, plus a margin of 3.00% or a Eurocurrency rate on deposits of one, two, three or six months but no less than 1.00% per annum plus a margin of 4.00%. The Company has selected the Eurocurrency rate as of June 30, 2015 resulting in an interest rate currently at 5.00%. The term loan provides for interest payments no less than quarterly. In addition, quarterly principal payments of $0.8 million are required. The balance of the loan is due at maturity on June 6, 2019. The Company must prepay, generally within three months after year end, 50% or 25% of excess cash flow, as defined. The percent of excess cash flow required is dependent on the Company’s leverage ratio. The excess cash flow payment due for the year ended December 31, 2014 was not significant. The Company must also make prepayments on loans in the case of certain events such as large asset sales. The Company also has a revolving credit facility which was extended on April 9, 2015 to mature on December 6, 2018. The facility has an available balance of $30.0 million with no amounts drawn as of or for the periods ended June 30, 2015 and 2014. A commitment fee is payable quarterly to the lender under the facility. Interest on amounts outstanding is based on, at the Company’s option, the bank prime rate plus a margin of 3.0% to 6.0% or the Eurocurrency rate for one, two, three or six month periods plus a margin of 4.0% to 5.5%. The margin is dependent on the Company’s leverage, as defined in the agreement, at the time of the borrowing. Maturities The annual requirements for principal payments on long-term debt as of June 30, 2015 are as follows (dollars in thousands): Years ended December 31, 2015 (remainder of year) $ 2016 2017 2018 2019 $ Capitalized Interest Interest capitalized by the Company amounted to $0.3 million and $0.5 million for the three and six months ended June 30, 2015, respectively. Interest capitalized by the Company amounted to $0.3 million and $0.5 million for the three and six months ended June 30, 2014, respectively.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2015
Employee Benefit Plans
Employee Benefit Plans	7. Employee Benefit Plans The Company sponsors a defined benefit pension plan, with benefits frozen as of March 1, 2012, and postretirement health and life insurance benefits for union employees. The Company also sponsors a cash balance pension plan for nonunion employees, with benefits frozen as of April 1, 2007, and certain management employees receive postretirement health and life insurance under grandfathered provisions of a terminated plan. The following provides the components of benefit costs (income) for the three and six months ended June 30, 2015 and 2014 (dollars in thousands): Pension Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Interest cost $ $ $ $ Expected asset return ) ) ) ) Amortization of loss ) Net periodic benefit income ) ) ) ) Settlement loss — — Net benefit expense (income) $ $ ) $ ) $ ) Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of loss Net periodic benefit cost $ $ $ $ During the three and six months ended June 30, 2015, the Company’s pension plan for union employees paid lump-sum benefits to plan participants in full settlement of obligations due amounting to $13.7 million and $19.7 million, respectively. During the six months ended June 30, 2015, the Company’s pension plan for management employees paid lump sum benefits in full settlement amounting to $0.6 million. The Company’s pension plan for management employees paid such benefits for the first quarter of 2015 only. This resulted in the recognition of a loss on settlement for both pension plans amounting to $1.4 and $2.2 million for the three and six months ended June 30, 2015, respectively. Because of the settlements, the Company remeasured its union pension plan obligations and plan assets as of June 30, 2015. The Company had previously measured both its union and management pension plan obligations and plan assets as of March 31, 2015 in determining its employee benefit obligations as of that date. The Company used a discount rate of 4.09% as of June 30, 2015 to measure the union pension plan obligation. The Company used discount rates of 3.54% to 3.57% to measure the plan obligations as of March 31, 2015. The new measurements resulted in other comprehensive income of $3.9 million and $1.7 million for the three and six months ended June 30, 2015, respectively. The Company previously disclosed in its consolidated financial statements for the year ended December 31, 2014 that it expected to contribute $10.0 million to its pension plan in 2015. As of June 30, 2015, the Company has contributed $4.2 million. The Company presently anticipates contributing the full amount during the remainder of 2015.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	8. Income Taxes Income tax expense differs from the amounts determined by applying the statutory federal income tax rate of 34% to the income before income tax provision for the following reasons (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Income tax at federal rate $ $ $ $ Increase (decrease) resulting from: State income taxes, net of federal income tax Compensation deduction limitations Expense reflected in tax basis — — Other permanent differences Capital goods excise tax credit ) ) ) ) Total income tax expense $ $ $ $ The Company evaluates its tax positions for liability recognition. As of June 30, 2015, the Company had no unrecognized tax benefits. No interest or penalties related to tax assessments were recognized in the Company’s condensed consolidated statements of operations for the three and six months ended June 30, 2015 or 2014. All tax years from 2011 remain open for both federal and Hawaii state purposes.

Stock Compensation

Stock Compensation	6 Months Ended
	Jun. 30, 2015
Stock Compensation
Stock Compensation	9. Stock Compensation The Company has an equity incentive plan. The Compensation Committee of the Company’s Board of Directors may grant awards under the plan in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. The maximum number of shares issuable under the equity incentive plan is 1,400,000 shares. All grants under the equity incentive plan will be issued to acquire shares at the fair value on date of grant. As of June 30, 2015, all awards were restricted stock units. Activity with respect to outstanding restricted stock units for the six months ended June 30, 2015 and 2014 was as follows: Weighted- Average Grant-Date Shares Fair Value 2015 Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2015 $ 2014 Nonvested at January 1, 2014 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2014 $ The Company recognized compensation expense of $0.5 million and $0.9 million for the three and six months ended June 30, 2015, respectively. The Company recognized compensation expense of $1.0 million and $2.1 million for the three and six months ended June 30, 2014, respectively. The fair value as of the vesting date for the restricted stock units that vested during the six months ended June 30, 2015 and 2014 was $2.5 million and $2.7 million, respectively. Upon vesting, unit holders have the option to net share-settle to cover the required withholding tax and the remaining amount is converted into an equivalent number of shares of common stock. The total shares withheld were 35,714 and 34,573 for the six months ended June 30, 2015 and 2014, respectively, and were based on the value of the restricted stock units as determined by the Company’s closing stock price on the date of vesting. Total payments for the employees’ tax obligations to the tax authorities amounted to $0.9 million and $1.0 million for the six months ended June 30, 2015 and 2014, respectively. Other than reimbursements for tax withholdings, there was no cash received under all share-based arrangements. In March 2014, the terms of certain restricted stock units were modified which resulted in the restricted stock units vesting as of the date of the modification. The Company recognized the incremental value of $0.6 million as additional expense in the first quarter of 2014.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	10. Stockholders’ Equity Warrants In 2010, the Company issued warrants to purchase 1,481,055 shares of common stock for $14.00 per share. The warrants to purchase shares may be exercised anytime from January 26, 2011 to the maturity on October 28, 2015. The warrants may be exercised on a cashless basis whereby a portion of the exercised warrants are tendered in lieu of payment for the exercise price. During the six months ended June 30, 2015 and 2014, warrants were exercised on a cashless basis resulting in the issuance of 21,371 shares and 15,361 shares of common stock, respectively. In addition, another 238,697 warrants were exercised for cash consideration of $3.3 million during the six months ended June 30, 2015. Accumulated Other Comprehensive Income (Loss) The changes in components of accumulated other comprehensive income (loss) are as follows (dollars in thousands): Unrealized Gain (Loss) on Retirement Investments Plans Total Three months ended June 30, 2015 April 1, 2015 $ ) $ ) $ ) Other comprehensive income (loss) for 2015 ) June 30, 2015 $ ) $ ) $ ) Six months ended June 30, 2015 January 1, 2015 $ ) $ ) $ ) Other comprehensive income for 2015 — June 30, 2015 $ ) $ ) $ ) Unrealized Gain (Loss) on Retirement Investments Plans Total Three months ended June 30, 2014 April 1, 2014 $ ) $ ) $ ) Other comprehensive income for 2014 June 30, 2014 $ ) $ ) $ ) Six months ended June 30, 2014 January 1, 2014 $ ) $ ) $ ) Other comprehensive loss for 2014 ) ) ) June 30, 2014 $ ) $ ) $ ) Reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Retirement plans Amortization of (gain) loss and settlement loss ) Income tax credit (charge) on comprehensive income ) ) ) Net of tax $ $ $ $ ) The amortization of (gain) loss and settlement loss was recognized primarily in selling, general and administrative expense for the periods ended June 30, 2015 and 2014.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Trans-Pacific Submarine Cable In August 2014, the Company entered into an agreement with several other telecommunication companies to build and operate a trans-Pacific submarine cable system. The total system cost is expected to be $245 million and is primarily composed of a supply contract with the lead contractor. The Company will contribute $25 million over the multi-year construction period for a fractional ownership in the system. In addition, the Company will construct a cable landing station in Hawaii and provide cable landing services. The system is expected to be completed in December 2016. As of June 30, 2015, the Company had paid $2.3 million to the cable contractor for the cable build. The Company will have excess capacity on its share of the trans-Pacific cable that it will make available to other carriers for a fee. The Company is in the process of contracting with other carriers for long-term indefeasible right of use, or IRU, agreements for fiber circuit capacity. The Company may receive up-front payments for services to be delivered over a period of up to 25 years. The Company has entered into agreements for the sale of capacity for $27.0 million plus fees to activate assigned capacity, and for operations and maintenance. This includes a sale of $22.0 million in July 2015. As of June 30, 2015, the Company had received up-front payments, as provided for in one of the agreements, which are held in escrow amounting to $2.0 million. The funds in escrow will be released to the Company when the trans-Pacific cable is ready for service. The restricted cash is reflected in other assets in the condensed consolidated balance sheet. A liability to provide services in the future for the same amount is included in other liabilities. Collective Bargaining Agreement The Company has a collective bargaining agreement with the International Brotherhood of Electrical Workers Local 1357 (“IBEW”) that expires on December 31, 2017. The agreement covers approximately half of the Company’s work force. Third Party Claims In the normal course of conducting its business, the Company is involved in various disputes with third parties, including vendors and customers. The outcome of such disputes is generally uncertain and subject to commercial negotiations. The Company periodically assesses its liabilities in connection with these matters and records reserves for those matters where it is probable that a loss has been incurred and the loss can be reasonably estimated. Based on management’s most recent assessment, the Company believes that the risk of loss in excess of liabilities recorded is not material for all outstanding claims and disputes and the ultimate outcome of such matters will not have a material adverse effect on the Company’s results of operations, cash flows or financial position. Litigation The Company is involved in litigation arising in the normal course of business. The outcome of litigation is not expected to have a material adverse impact on the Company’s condensed consolidated financial statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	12. Fair Value of Financial Instruments The following method and assumptions were used to estimate the fair value of each class of financial instruments for which it is practical to estimate the fair value. Cash and cash equivalents, accounts receivable and accounts payable — The carrying amount approximates fair value. The valuation is based on settlements of similar financial instruments all of which are short-term in nature and generally settled at or near cost. Cash is measured at Level 1. Investment securities — The fair value of investment securities is based on quoted market prices. Investment securities are included in other assets on the condensed consolidated balance sheets. Debt — The fair value of debt is based on the value at which the debt is trading among holders. The estimated fair value of financial instruments is as follows (dollars in thousands): Carrying Fair Value Value June 30, 2015 Assets - investment in U.S. Treasury obligations $ $ Liabilities - long-term debt (carried at cost) December 31, 2014 Assets - investment in U.S. Treasury obligations $ $ Liabilities - long-term debt (carried at cost) Fair Value Measurements Fair value for accounting purposes is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Assets measured at fair value on a recurring basis represent investment securities included in other assets. Liabilities carried at amortized cost with fair value disclosure on a recurring basis represent long-term debt. A summary is as follows (dollars in thousands): June 30, December 31, 2015 2014 Asset value measurements using: Quoted prices in active markets for identical assets (Level 1) $ $ Signficant other observable inputs (Level 2) — — Significant unobservable inputs (Level 3) — — $ $ Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Signficant other observable inputs (Level 2) Significant unobservable inputs (Level 3) — — $ $

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information
Segment Information	13. Segment Information The Company operates in two reportable segments of telecommunications and data center colocation. This conclusion is based on how resources are allocated and performance is assessed by the Chief Executive Officer, the Company’s chief operating decision maker. The telecommunications segment provides local voice services, video, high-speed internet and long distance voice services. In addition, the segment provides network access which includes data transport. Various related telephony services are provided including equipment and managed services. The data center colocation segment provides physical colocation, virtual colocation and various related telephony services. The following table provides operating financial information for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014 (dollars in thousands): Tele- Data Center Intersegment communications Colocation Elimination Total Three months ended June 30, 2015 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Three months ended June 30, 2014 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Six months ended June 30, 2015 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Capital expeditures — Six months ended June 30, 2014 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Capital expeditures — Intersegment revenue represents primarily network access services provided by the telecommunications segment for data center colocation. For the three and six months ended June 30, 2015 and 2014, total operating income above reconciles to the condensed consolidated statement of income as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Operating income $ $ $ $ Corporate other expense ) ) ) ) Income before income tax provision $ $ $ $ The following table provides information on the Company’s revenue, net of intersegment eliminations, by product group (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Local voice and other retail services $ $ $ $ Network access services Data center colocation $ $ $ $

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and money market accounts with maturities at acquisition of three months or less. The majority of cash balances at June 30, 2015 are held in one bank in demand deposit accounts. During the six months ended June 30, 2015, funds amounting to $0.4 million in a restricted cash account held in conjunction with a lease agreement provision were released and deposited into unrestricted cash.
Supplemental Non-Cash Investing and Financing Activities	Supplemental Non-Cash Investing and Financing Activities Accounts payable included $15.2 million and $13.6 million at June 30, 2015 and 2014, respectively, for additions to property, plant and equipment.
Taxes Collected from Customers	Taxes Collected from Customers The Company presents taxes collected from customers and remitted to governmental authorities on a gross basis, including such amounts in the Company’s reported operating revenues. Such amounts represent primarily Hawaii state general excise taxes and Hawaii Public Utility Commission fees. Such taxes and fees amounted to $2.0 million and $4.0 million for the three and six months ended June 30, 2015, and $1.8 million and $3.6 million for the three and six months ended June 30, 2014, respectively.
Earnings per Share	Earnings per Share Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing earnings by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing earnings, adjusted for the effect, if any, from assumed conversion of all potentially dilutive common shares outstanding, by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive common shares outstanding. The denominator used to compute basic and diluted earnings per share was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share - weighted average shares Effect of dilutive securities: Employee and director restricted stock units Warrants Diluted earnings per share - weighted average shares The computation of weighted average dilutive shares outstanding excluded grants of restricted stock units convertible into 22,825 shares of common stock for the three months ended June 30, 2015, and 85,074 shares and 34,721 shares of common stock for the three and six month periods ended June 30, 2014, respectively. The unrecognized compensation on a per unit basis for these restricted stock units was greater than the average market price of the Company’s common stock for the periods presented. Therefore, the effect would be anti-dilutive. For the six months ended June 30, 2015, there were no restricted stock units that were anti-dilutive to earnings per share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which provides guidance for revenue recognition which was amended in July 2015. The new accounting standard will supersede the current revenue recognition requirements and most industry-specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard will be effective for the Company in the first quarter of 2018 and either full retrospective or modified retrospective adoption is permitted. Early adoption is permitted from the first quarter of 2017. The Company is currently evaluating the impact of the adoption of this accounting standard on the Company’s financial position, results of operations and cash flows. In August 2014, the FASB issued an accounting standard with new guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related disclosures. Management must evaluate whether it is probable that known conditions or events, considered in the aggregate, would raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. If such conditions or events are identified, the standard requires management’s mitigation plans to alleviate the doubt or a statement of the substantial doubt about the entity’s ability to continue as a going concern to be disclosed in the financial statements. The standard is effective for fiscal years and interim periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of adoption of this accounting standard. In April 2015, the FASB issued an accounting standard simplifying the presentation of debt issuance costs. The new standard requires 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 that debt liability which is consistent with debt discounts. The standard requires retrospective adoption and will be effective beginning in the first quarter of 2016 for the Company. Early adoption is permitted. The Company is currently evaluating the impact and timing of adopting this new accounting standard and the impact it will have on the Company’s financial position, results of operations and cash flows.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Schedule of denominator used to compute basic and diluted earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per share - weighted average shares Effect of dilutive securities: Employee and director restricted stock units Warrants Diluted earnings per share - weighted average shares

Receivables (Tables)

Receivables (Tables)	6 Months Ended
	Jun. 30, 2015
Receivables
Schedule of receivables	Receivables consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Customers and other $ $ Allowance for doubtful accounts ) ) $ $

Long-Lived Assets (Tables)

Long-Lived Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Long-Lived Assets
Schedule of property, plant and equipment	Property, plant and equipment consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Property, plant and equipment $ $ Less accumulated depreciation ) ) $ $
Schedule of identifiable intangible assets	The gross carrying amount and accumulated amortization of identifiable intangible assets are as follows (dollars in thousands): June 30, 2015 December 31, 2014 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Subject to amortization — Customer relationships $ $ $ $ $ $ Trade name and other Not subject to amortization — Brand name — — — — $ $ $ $ $ $
Schedule of estimated amortization expense	Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): 2015 (remaining months) $ 2016 2017 2018 2019 Thereafter $

Accrued Expenses and Other Cu25

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses	Accrued expenses consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Salaries and benefits $ $ Interest Other taxes $ $
Other current liabilities	Other current liabilities consisted of the following (dollars in thousands): June 30, December 31, 2015 2014 Other postretirement benefits, current $ $ Installment financing contracts, current Other $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long Term Debt
Schedule of long-term debt	Long-term debt consisted of the following (dollars in thousands): Interest Rate at June 30, Final June 30, December 31, 2015 Maturity 2015 2014 Term loan % June 6, 2019 $ $ Original issue discount ) ) Current Noncurrent $ $
Schedule of annual requirements for principal payments on long-term debt	The annual requirements for principal payments on long-term debt as of June 30, 2015 are as follows (dollars in thousands): Years ended December 31, 2015 (remainder of year) $ 2016 2017 2018 2019 $

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Pension
Employee Benefit Plans
Schedule of components of benefit costs	The following provides the components of benefit costs (income) for the three and six months ended June 30, 2015 and 2014 (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Interest cost $ $ $ $ Expected asset return ) ) ) ) Amortization of loss ) Net periodic benefit income ) ) ) ) Settlement loss — — Net benefit expense (income) $ $ ) $ ) $ )
Other Postretirement Benefits
Employee Benefit Plans
Schedule of components of benefit costs	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Amortization of loss Net periodic benefit cost $ $ $ $

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Taxes
Schedule of reconciliation of income tax expense	Income tax expense differs from the amounts determined by applying the statutory federal income tax rate of 34% to the income before income tax provision for the following reasons (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Income tax at federal rate $ $ $ $ Increase (decrease) resulting from: State income taxes, net of federal income tax Compensation deduction limitations Expense reflected in tax basis — — Other permanent differences Capital goods excise tax credit ) ) ) ) Total income tax expense $ $ $ $

Stock Compensation (Tables)

Stock Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Stock Compensation
Schedule of restricted stock units	Weighted- Average Grant-Date Shares Fair Value 2015 Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2015 $ 2014 Nonvested at January 1, 2014 $ Granted Vested ) Forfeited ) Nonvested at June 30, 2014 $

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Schedule of changes in components of accumulated other comprehensive income (loss)	The changes in components of accumulated other comprehensive income (loss) are as follows (dollars in thousands): Unrealized Gain (Loss) on Retirement Investments Plans Total Three months ended June 30, 2015 April 1, 2015 $ ) $ ) $ ) Other comprehensive income (loss) for 2015 ) June 30, 2015 $ ) $ ) $ ) Six months ended June 30, 2015 January 1, 2015 $ ) $ ) $ ) Other comprehensive income for 2015 — June 30, 2015 $ ) $ ) $ ) Unrealized Gain (Loss) on Retirement Investments Plans Total Three months ended June 30, 2014 April 1, 2014 $ ) $ ) $ ) Other comprehensive income for 2014 June 30, 2014 $ ) $ ) $ ) Six months ended June 30, 2014 January 1, 2014 $ ) $ ) $ ) Other comprehensive loss for 2014 ) ) ) June 30, 2014 $ ) $ ) $ )
Schedule of reclassifications out of accumulated other comprehensive income (loss)	Reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Retirement plans Amortization of (gain) loss and settlement loss ) Income tax credit (charge) on comprehensive income ) ) ) Net of tax $ $ $ $ )

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value of Financial Instruments
Schedule of estimated fair value of financial instruments	The estimated fair value of financial instruments is as follows (dollars in thousands): Carrying Fair Value Value June 30, 2015 Assets - investment in U.S. Treasury obligations $ $ Liabilities - long-term debt (carried at cost) December 31, 2014 Assets - investment in U.S. Treasury obligations $ $ Liabilities - long-term debt (carried at cost)
Schedule of assets and liabilities measured at fair value on a recurring basis	A summary is as follows (dollars in thousands): June 30, December 31, 2015 2014 Asset value measurements using: Quoted prices in active markets for identical assets (Level 1) $ $ Signficant other observable inputs (Level 2) — — Significant unobservable inputs (Level 3) — — $ $ Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Signficant other observable inputs (Level 2) Significant unobservable inputs (Level 3) — — $ $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Information
Schedule of operating financial information of segments	The following table provides operating financial information for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014 (dollars in thousands): Tele- Data Center Intersegment communications Colocation Elimination Total Three months ended June 30, 2015 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Three months ended June 30, 2014 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Six months ended June 30, 2015 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Capital expeditures — Six months ended June 30, 2014 Operating revenues $ $ $ ) $ Depreciation and amortization — Operating income (loss) ) — Capital expeditures —
Reconciliation of total operating income to the consolidated statement of income	For the three and six months ended June 30, 2015 and 2014, total operating income above reconciles to the condensed consolidated statement of income as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Operating income $ $ $ $ Corporate other expense ) ) ) ) Income before income tax provision $ $ $ $
Schedule of revenue, net of intersegment eliminations, by product group	The following table provides information on the Company’s revenue, net of intersegment eliminations, by product group (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Local voice and other retail services $ $ $ $ Network access services Data center colocation $ $ $ $

Description of Business (Detail

Description of Business (Details)	6 Months Ended
	Jun. 30, 2015item
Description of Business
Number of subsidiaries owned by company	1
Number of subsidiaries owned by subsidiary	2

Basis of Presentation (Details)

Basis of Presentation (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)
Cash and Cash Equivalents
Number of banks in which the entity has its majority cash balances held in demand deposit accounts | item			1
Funds held in restricted cash account	$ 0.4		$ 0.4
Supplemental Non-Cash Investing and Financing Activities
Accounts payable			15.2	$ 13.6
Taxes Collected from Customers
Excise taxes and Hawaii Public Utility Commission fees	$ 2	$ 1.8	$ 4	$ 3.6

Basis of Presentation (Details

Basis of Presentation (Details 2) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Denominator used to compute basic and diluted earnings per share
Basic earnings per share - weighted average shares	10,797,111	10,585,736	10,744,944	10,557,047
Effect of dilutive securities:
Employee and director restricted stock units (in shares)	25,878	87,655	72,367	135,777
Warrants (in shares)	435,189	590,227	444,224	607,784
Diluted earnings per share - weighted average shares	11,258,178	11,263,618	11,261,535	11,300,608
Shares attributable to restricted stock units excluded from computation of weighted average dilutive shares	22,825	85,074	0	34,721

Receivables (Details)

Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Receivables
Customers and other	$ 37,873	$ 36,417
Allowance for doubtful accounts	(3,820)	(3,755)
Receivables, net	$ 34,053	$ 32,662

Long-Lived Assets (Details)

Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property, plant and equipment
Property, plant and equipment	$ 887,861		$ 887,861		$ 843,589
Less accumulated depreciation and amortization	(317,194)		(317,194)		(277,633)
Total property, plant and equipment, net	570,667		570,667		$ 565,956
Depreciation expense	$ 21,300	$ 18,200	$ 42,000	$ 36,200

Long-Lived Assets (Details 2)

Long-Lived Assets (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Subject to amortization
Gross Carrying Value	$ 22,029		$ 22,029		$ 22,029
Accumulated Amortization	13,250		13,250		12,001
Net Carrying Value	8,779		8,779		10,028
Not subject to amortization
Carrying Value - Brand name	27,300		27,300		27,300
Total intangible assets
Gross Carrying Value	49,329		49,329		49,329
Accumulated Amortization	13,250		13,250		12,001
Net Carrying Value	36,079		36,079		37,328
Amortization expense	600	$ 700	1,200	$ 1,400
Estimated amortization expense
2015 (remaining months)	1,249		1,249
2,016	2,101		2,101
2,017	1,703		1,703
2,018	1,308		1,308
2,019	1,188		1,188
Thereafter	1,230		1,230
Net Carrying Value	8,779		8,779		10,028
Customer relationships
Subject to amortization
Gross Carrying Value	21,709		21,709		21,709
Accumulated Amortization	13,018		13,018		11,799
Net Carrying Value	8,691		8,691		9,910
Total intangible assets
Accumulated Amortization	13,018		13,018		11,799
Estimated amortization expense
Net Carrying Value	8,691		8,691		9,910
Trade name and other
Subject to amortization
Gross Carrying Value	320		320		320
Accumulated Amortization	232		232		202
Net Carrying Value	88		88		118
Total intangible assets
Accumulated Amortization	232		232		202
Estimated amortization expense
Net Carrying Value	$ 88		$ 88		$ 118

Accrued Expenses and Other Cu39

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accrued Expenses and Other Current Liabilities
Salaries and benefits	$ 12,604	$ 15,910
Interest	2,496	2,550
Other taxes	1,002	939
Accrued expenses	16,102	19,399
Other Liabilities Current
Other postretirement benefits, current	2,660	2,660
Installment financing contracts, current	3,524	2,787
Other	1,304	1,343
Other current liabilities	$ 7,488	$ 6,790

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Long-term debt
Long-term debt	$ 294,638		$ 294,638
Current	3,000		3,000		$ 3,000
Noncurrent	288,307		288,307		289,423
Maturities of Long-term Debt [Abstract]
2015 (remainder of year)	1,500		1,500
2,016	3,000		3,000
2,017	3,000		3,000
2,018	3,000		3,000
2,019	284,138		284,138
Total	294,638		294,638
Capitalized Interest
Interest capitalized	300	$ 300	500	$ 500
Term loan
Long-term debt
Long-term debt	$ 294,638		$ 294,638		296,138
Interest Rate (as a percent)	5.00%		5.00%
Original issue discount	$ (3,331)		$ (3,331)		(3,715)
Total	291,307		291,307		292,423
Quarterly principal payments			800
Maturities of Long-term Debt [Abstract]
Total	$ 294,638		$ 294,638		$ 296,138
Term loan | Minimum
Long-term debt
Percentage of excess cash flow used to prepay the debt			25.00%
Term loan | Maximum
Long-term debt
Percentage of excess cash flow used to prepay the debt			50.00%
Term loan | Prime rate
Long-term debt
Variable rate basis			prime rate
Margin (as a percent)			3.00%
Term loan | Eurocurrency rate
Long-term debt
Interest Rate (as a percent)	5.00%		5.00%
Variable rate basis			one, two, three or six months Eurocurrency rate
Margin (as a percent)			4.00%
Term loan repaid | Eurocurrency rate | Minimum
Long-term debt
Variable interest rate floor (as a percent)	1.00%		1.00%
Revolving credit facility
Long-term debt
Available balance under the facility	$ 30,000		$ 30,000
Amounts drawn under the facility	$ 0	$ 0	$ 0	$ 0
Revolving credit facility | Prime rate | Minimum
Long-term debt
Variable rate basis			prime rate
Margin (as a percent)			3.00%
Revolving credit facility | Prime rate | Maximum
Long-term debt
Variable rate basis			prime rate
Margin (as a percent)			6.00%
Revolving credit facility | Eurocurrency rate | Minimum
Long-term debt
Variable rate basis			Eurocurrency rate for one, two, three or six month periods
Margin (as a percent)			4.00%
Revolving credit facility | Eurocurrency rate | Maximum
Long-term debt
Variable rate basis			Eurocurrency rate for one, two, three or six month periods
Margin (as a percent)			5.50%

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2015
Other Postretirement Benefits
Settlement loss	$ 1,400		$ 2,200
Other comprehensive income due to the results of fair value of plan assets	3,900		$ 1,700
Actuarial assumptions:
Discount rate (as a percent)			4.09%
Union employees
Other Postretirement Benefits
Lump-sum benefits to plan participants in full settlement of obligations	13,700		$ 19,700
Non-union employees
Other Postretirement Benefits
Lump-sum benefits to plan participants in full settlement of obligations			600
Minimum
Other Postretirement Benefits
Discount rate used to measure the plan obligations (as percent)					3.54%
Maximum
Other Postretirement Benefits
Discount rate used to measure the plan obligations (as percent)					3.57%
Pension
Other Postretirement Benefits
Interest cost	1,984	$ 2,208	4,057	$ 4,416
Expected asset return	(3,366)	(3,178)	(6,760)	(6,356)
Amortization of loss	39	29	(18)	58
Net periodic benefit income	(1,343)	(941)	(2,721)	(1,882)
Settlement loss	1,397		2,248
Net benefit expense (income)	54	(941)	(473)	(1,882)
Expected company contribution			10,000
Company contribution			4,200
Other Postretirement Benefits
Other Postretirement Benefits
Service cost	259	230	518	460
Interest cost	589	602	1,178	1,204
Amortization of loss	149	15	299	30
Net periodic benefit income	$ 997	$ 847	$ 1,995	$ 1,694

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes
Statutory federal income tax rate (as a percent)			34.00%
Income tax at federal rate	$ 373	$ 1,288	$ 914	$ 2,633
Increase (decrease) resulting from:
State income taxes, net of federal income tax	46	143	113	310
Compensation deduction limitations	104	236	228	354
Expense reflected in tax basis	211		211
Other permanent differences	49	185	154	248
Capital goods excise tax credit	(140)	(303)	(363)	(404)
Total income tax expense	643	1,549	1,257	3,141
Unrecognized Tax Benefits	0		0
Interest or penalties related to tax assessments recognized	$ 0	$ 0	$ 0	$ 0

Stock Compensation (Details)

Stock Compensation (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Stock Option Plan
Number of shares issuable under the plan	1,400,000
Restricted stock units
Shares
Nonvested at the beginning of the period (in shares)	245,752	260,734
Granted (in shares)	140,909	157,481
Vested (in shares)	(107,788)	(109,399)
Forfeited (in shares)	(100,053)	(1,534)
Nonvested at the end of the period (in shares)	178,820	307,282
Weighted-Average Grant-Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 27	$ 18
Granted (in dollars per share)	26	31
Vested (in dollars per share)	28	25
Forfeited (in dollars per share)	25	29
Nonvested at the end of the period (in dollars per share)	$ 26	$ 24

Stock Compensation (Details 2)

Stock Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Option Plan
Compensation expense	$ 500	$ 1,000		$ 900	$ 2,100
Payments for employees' tax obligations				928	1,005
Restricted stock units
Stock Option Plan
Fair value of restricted stock units vested				$ 2,500	$ 2,700
Shares withheld to cover withholding tax of unit holders				35,714	34,573
Payments for employees' tax obligations				$ 900	$ 1,000
Incremental value of additional expense			$ 600

Stockholder's Equity (Details)

Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2010
Stockholders' Equity
Warrants issued (in shares)					1,481,055
Exercise Price (in dollars per share)					$ 14
Shares of common stock issued on exercise of warrants			21,371	15,361
Warrants exercised			238,697
Warrants exercised value			$ 3,300
Changes in components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ (25,184)	$ (4,891)	(23,947)	$ (4,716)
Other comprehensive income (loss)	2,520	29	1,283	(146)
Balance at the end of the period	(22,664)	(4,862)	(22,664)	(4,862)
Unrealized Gain (Loss) on Investments
Changes in components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	(62)	(63)	(64)	(60)
Other comprehensive income (loss)	(2)	2		(1)
Balance at the end of the period	(64)	(61)	(64)	(61)
Retirement plans
Changes in components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	(25,122)	(4,828)	(23,883)	(4,656)
Other comprehensive income (loss)	2,522	27	1,283	(145)
Balance at the end of the period	$ (22,600)	$ (4,801)	$ (22,600)	$ (4,801)

Stockholder's Equity (Details 2

Stockholder's Equity (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax credit (charge) on comprehensive income	$ (1,571)	$ (17)	$ (792)	$ 100
Retirement plans | Reclassifications out of accumulated other comprehensive income (loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of (gain) loss and settlement loss	1,585	44	2,529	(245)
Income tax credit (charge) on comprehensive income	(602)	(17)	(961)	100
Net of tax	$ 983	$ 27	$ 1,568	$ (145)

Commitments and Contingencies (

Commitments and Contingencies (Details) - Jointly owned utility plant - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Aug. 31, 2014
Jointly Owned Utility Plant Interests [Line Items]
Cost of construction			$ 245
Company investment in construction costs of plant			$ 25
Paid to the cable contractor for the cable build		$ 2.3
Period of up-front payment received		25 years
Proceeds from sale of capacity		$ 27
Upfront payments held in escrow received		$ 2
Subsequent Event
Jointly Owned Utility Plant Interests [Line Items]
Proceeds from sale of capacity	$ 22

Fair Value of Financial Instr48

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Recurring
Fair Value of Financial Instruments
Assets - investment in U.S. Treasury obligations	$ 810	$ 808
Liabilities - long-term debt (carried at cost)	296,111	296,908
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring
Fair Value of Financial Instruments
Assets - investment in U.S. Treasury obligations	810	808
Significant other observable inputs (Level 2) | Recurring
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	296,111	296,908
Carrying Value
Fair Value of Financial Instruments
Assets - investment in U.S. Treasury obligations	810	808
Liabilities - long-term debt (carried at cost)	291,307	292,423
Fair Value
Fair Value of Financial Instruments
Assets - investment in U.S. Treasury obligations	810	808
Liabilities - long-term debt (carried at cost)	$ 296,111	$ 296,908

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)
Segment Information
Number of reportable segments | item			2
Segment Information
Operating revenues	$ 96,187	$ 96,784	$ 193,303	$ 193,856
Depreciation and amortization	21,941	18,884	43,221	37,604
Operating income (loss)	5,260	7,892	11,181	16,030
Capital expenditures			46,955	51,061
Telecommunications
Segment Information
Operating revenues	93,812	94,700	188,649	189,576
Depreciation and amortization	21,374	18,467	42,102	36,781
Operating income (loss)	5,570	8,126	11,818	16,166
Capital expenditures			46,377	50,716
Data center colocation services
Segment Information
Operating revenues	2,784	2,323	5,381	4,728
Depreciation and amortization	567	417	1,119	823
Operating income (loss)	(310)	(234)	(637)	(136)
Capital expenditures			578	345
Intersegment Elimination
Segment Information
Operating revenues	$ (409)	$ (239)	$ (727)	$ (448)

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of total operating income to the consolidated statement of income
Operating income	$ 5,260	$ 7,892	$ 11,181	$ 16,030
Income before income tax provision	1,098	3,788	2,689	7,745
Operating segment
Reconciliation of total operating income to the consolidated statement of income
Operating income	5,260	7,892	11,181	16,030
Corporate other expense	(4,162)	(4,104)	(8,492)	(8,285)
Income before income tax provision	$ 1,098	$ 3,788	$ 2,689	$ 7,745

Segment Information (Details 3)

Segment Information (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Information on revenue, net of intersegment eliminations, by product group
Revenue	$ 96,187	$ 96,784	$ 193,303	$ 193,856
Local voice and other retail services
Information on revenue, net of intersegment eliminations, by product group
Revenue	63,142	62,951	126,354	125,887
Network access services
Information on revenue, net of intersegment eliminations, by product group
Revenue	30,261	31,510	61,568	63,241
Data center colocation
Information on revenue, net of intersegment eliminations, by product group
Revenue	$ 2,784	$ 2,323	$ 5,381	$ 4,728