Hawaiian Telcom Holdco (HCOM) 10-Q 1 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
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, 2016
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		11,511,591
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Income
Operating revenues	$ 99,541	$ 96,187	$ 198,335	$ 193,303
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	40,605	39,219	83,084	79,402
Selling, general and administrative	29,554	29,767	59,419	59,499
Depreciation and amortization	22,493	21,941	44,443	43,221
Total operating expenses	92,652	90,927	186,946	182,122
Operating income	6,889	5,260	11,389	11,181
Other income (expense):
Interest expense	(4,484)	(4,166)	(8,724)	(8,503)
Interest income and other		4		11
Total other expense	(4,484)	(4,162)	(8,724)	(8,492)
Income before income tax provision	2,405	1,098	2,665	2,689
Income tax provision	960	643	1,066	1,257
Net income	$ 1,445	$ 455	$ 1,599	$ 1,432
Net income per common share -
Basic (in dollars per share)	$ 0.13	$ 0.04	$ 0.14	$ 0.13
Diluted (in dollars per share)	$ 0.13	$ 0.04	$ 0.14	$ 0.13
Weighted average shares used to compute net income per common share -
Basic (in shares)	11,511,591	10,797,111	11,493,712	10,744,944
Diluted (in shares)	11,525,850	11,258,178	11,523,215	11,261,535

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 1,445	$ 455	$ 1,599	$ 1,432
Other comprehensive income (loss):
Unrealized holding loss arising during period		(2)
Retirement plan gain	247	4,093	494	2,075
Income tax provision on comprehensive income	(94)	(1,571)	(188)	(792)
Other comprehensive income, net of tax	153	2,520	306	1,283
Comprehensive income	$ 1,598	$ 2,975	$ 1,905	$ 2,715

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 26,155	$ 30,312
Receivables, net	29,120	32,736
Material and supplies	8,603	8,499
Prepaid expenses	5,580	4,068
Other current assets	3,184	2,102
Total current assets	72,642	77,717
Property, plant and equipment, net	589,551	579,107
Intangible assets, net	33,779	34,828
Goodwill	12,104	12,104
Deferred income taxes, net	88,331	89,896
Other assets	6,193	6,043
Total assets	802,600	799,695
Current liabilities
Current portion of long-term debt	3,000	3,000
Accounts payable	50,546	44,841
Accrued expenses	16,561	14,491
Advance billings and customer deposits	15,958	17,551
Other current liabilities	6,305	5,932
Total current liabilities	92,370	85,815
Long-term debt	282,161	283,046
Employee benefit obligations	100,207	104,597
Other liabilities	17,468	18,538
Total liabilities	492,206	491,996
Stockholders' equity
Common stock, par value of $0.01 per share, 245,000,000 shares authorized and 11,511,591 and 11,466,398 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	115	115
Additional paid-in capital	178,809	178,019
Accumulated other comprehensive loss	(29,082)	(29,388)
Retained earnings	160,552	158,953
Total stockholders' equity	310,394	307,699
Total liabilities and stockholders' equity	$ 802,600	$ 799,695

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
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	11,511,591	11,466,398
Common stock, shares outstanding	11,511,591	11,466,398

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 1,599	$ 1,432
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,443	43,221
Deferred financing amortization	1,005	953
Employee retirement benefits	(3,896)	(3,565)
Provision for uncollectible receivables	2,139	1,634
Stock based compensation	1,141	900
Deferred income taxes	1,377	1,621
Changes in operating assets and liabilities:
Receivables	1,477	(3,025)
Material and supplies	(104)	(92)
Prepaid expenses and other current assets	(2,594)	(1,944)
Accounts payable and accrued expenses	6,837	(2,037)
Advance billings and customer deposits	(1,593)	668
Other current liabilities	(385)	(465)
Other	(157)	492
Net cash provided by operating activities	51,289	39,793
Cash flows from investing activities:
Capital expenditures	(52,898)	(52,916)
Funds released from restricted cash account		400
Net cash used in investing activities	(52,898)	(52,516)
Cash flows from financing activities:
Proceeds from exercise of warrant		3,341
Proceeds from installment financing	1,698	2,279
Repayment of capital lease and installment financing	(1,707)	(1,976)
Repayment of debt	(1,500)	(1,500)
Refinancing and loan amendment costs	(688)	(150)
Taxes paid related to net share settlement of equity awards	(351)	(928)
Net cash used in financing activities	(2,548)	1,066
Net change in cash and cash equivalents	(4,157)	(11,657)
Cash and cash equivalents, beginning of period	30,312	39,885
Cash and cash equivalents, end of period	26,155	28,228
Supplemental disclosure of cash flow information:
Interest paid, net of amounts capitalized	$ 6,350	$ 7,604

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, 2014	$ 107	$ 170,521	$ (23,947)	$ 157,853	$ 304,534
Balance (in shares) at Dec. 31, 2014	10,673,292
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, 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
Balance at Dec. 31, 2015	$ 115	178,019	(29,388)	158,953	307,699
Balance (in shares) at Dec. 31, 2015	11,466,398
Stock based compensation		1,141			1,141
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes		(351)			(351)
Common stock issued for stock compensation plans, net of shares withheld and withholding paid for employee taxes (in shares)	45,193
Net income				1,599	1,599
Other comprehensive income, net of tax			306		306
Balance at Jun. 30, 2016	$ 115	$ 178,809	$ (29,082)	$ 160,552	$ 310,394
Balance (in shares) at Jun. 30, 2016	11,511,591

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2016
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, 2016
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, 2015. 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, 2016 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 $21.5 million and $1 5.2 million at June 30, 2016 and 2015, 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 $4.3 million for the three and six months ended June 30, 2016, and $2.0 million and $4.0 million for the three and six months ended June 30, 2015, 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, 2016 2015 2016 2015 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 152,447 shares and 109,730 shares of common stock for the three and six months ended June 30, 2016, and 22,825 shares of common stock for the three months ended June 30, 2015. 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 period presented. For the six months ended June 30, 2015, there were no restricted stock units that were anti-dilutive to earnings per share. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new accounting standard which provides guidance for revenue recognition which was amended most recently in May 2016. The most recent amendments provide revised guidance on when to record revenue gross as the principal or net as the agent in accordance with the new revenue standard’s control principal and, provide for narrow scope modifications and practical expedients. The new standard, along with the amendments which must be adopted at the same time as the new standard, is effective for the Company in the first quarter of 2018 with either full retrospective or modified retrospective adoption permitted. The modified retrospective approach requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period for which the new accounting guidance is effective. Early adoption is allowed from the first quarter of 2017. The Company is currently evaluating the impact of the adoption of this accounting standard on the Company’s consolidated financial statements and financial statement disclosures. As this process is still ongoing, the effect of adoption is not yet known. In February 2016, the FASB issued a new standard for accounting for leases. The new standard requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. The new standard must be adopted using the modified retrospective approach. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the effect that the new standard will have on the Company’s consolidated financial statements and financial statement disclosures. In March 2016, the FASB issued a new standard that simplifies the accounting for employee share-based payment transactions. The new standard impacts the accounting for related income taxes, forfeitures and statutory tax withholding requirements as well as the classification of certain related payments in the statement of cash flows. The new accounting guidance is effective for the Company in the first quarter of 2017 with early adoption permitted. The adoption method required is specified as retrospective, modified retrospective or prospective for each of the various accounting provisions impacted by this new standard. The Company is evaluating the effect of the new guidance on the Company’s consolidated financial statements and financial statement disclosures. In June 2016, the FASB issued amended guidance on accounting for the impairment of financial instruments. The standard requires adoption of an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. For the Company, it is anticipated this will impact primarily the accounting for credit losses on trade receivables. The new standard is effective for the Company in the first quarter of 2020 with early adoption permitted from the first quarter of 2019. The provisions of the new standard expected to impact the Company must be adopted using the modified retrospective approach. The Company is evaluating the effect of the guidance on the Company’s consolidated financial statements and financial statement disclosures.

Receivables

Receivables	6 Months Ended
	Jun. 30, 2016
Receivables
Receivables	3. Receivables Receivables consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Customers and other $ $ Allowance for doubtful accounts $ $

Long-Lived Assets

Long-Lived Assets	6 Months Ended
	Jun. 30, 2016
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, 2016 2015 Property, plant and equipment cost $ $ Less accumulated depreciation $ $ Depreciation expense amounted to $22.0 million and $43.3 million for the three and six months ended June 30, 2016, respectively. Depreciation expense amounted to $21.3 million and $42.0 million for the three and six months ended June 30, 2015, respectively. The gross carrying amount and accumulated amortization of identifiable intangible assets are as follows (dollars in thousands): June 30, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated 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 $0.5 million and $1.1 million for the three and six months ended June 30, 2016, respectively. Amortization expense amounted to $0.6 million and $1.2 million for the three and six months ended June 30, 2015, respectively. Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): Year ended December 31, 2016 (remaining months) $ 2017 2018 2019 2020 Thereafter $

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2016
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, 2016 2015 Salaries and benefits $ $ Interest Other taxes $ $ Other current liabilities consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Other postretirement benefits, current $ $ Installment financing contracts, current Other $ $

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2016
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, 2016 Maturity 2016 2015 Term loan % June 6, 2019 $ $ Debt issue costs and original issue discount Current Noncurrent $ $ The term loan outstanding at June 30, 2016 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 3.25% 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 4.25% . The Company has selected the Eurocurrency rate as of June 30, 2016 resulting in an interest rate currently at 5.25% . The interest rate margin is subject to a further increase of 0.25% should there be a downgrade in the Company’s credit rating . 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, up to 75% of excess cash flow, as defined. The percent of excess cash flow required is dependent on the Company’s leverage ratio. The re was no excess cash flow payment due for the year ended December 31, 2015. The Company must also make prepayments on loans in the case of certain events such as large asset sales. In May 2016, the Company amended the term loan allowing for a revised leverage ratio financial covenant. The amendment modifies the maximum allowed leverage ratio, as defined, for the four consecutive fiscal quarters ended from June 30, 2016 to September 30, 2017 to 3.00 :1.00, from December 31, 2017 to September 30, 2018 to 2.75 :1.00, and from December 31, 2018 and each subsequent quarter to 2.50 :1.00. In conjunction with the amendment, the Company paid a fee to the lenders of $0.4 million and such fee was deferred as financing related costs. The Company concluded that the amended lenders’ term loans were not substantially different than the lenders’ term loans prior to amendment. In addition, the Company paid an arrangement fee and legal costs amounting to $0.3 million. Such fees were expensed as incurred in the second quarter of 2016. The Company also has a revolving credit facility which matures 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, 2016 and 2015. 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, 2016 are as follows (dollars in thousands): Year ended December 31, 2016 (remaining months) $ 2017 2018 2019 $ Capitalized Interest Interest capitalized by the Company amounted to $0.4 million and $0.7 million for the three and six months ended June 30, 2016, and $0.3 million and $0.5 million for the three and six months ended June 30, 2015, respectively.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 (dollars in thousands): Pension Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest cost $ $ $ $ Expected asset return Amortization of (gain) loss Net periodic benefit income Settlement loss — — Total benefit (income) expense $ $ $ $ Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Amortization of loss Total 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 million and $2.2 million for the three and six months ended June 30, 2015, respectively. Because of the settlements, the Company measured 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. The Company used a discount rate of 4.09% and 3.54% as of June 30, 2015 and March 31, 2015, respectively, to measure the union pension plan obligations. The Company used a discount rate of 3.57% to measure the management plan obligations as of March 31, 2015. The new measurements resulted in a retirement plan gain which was recognized in other comprehensive income of $3.9 million and $1.7 million for the three and six months ended June 30, 2015, respectively. For the six months ended June 30, 2016, lump sum benefits paid did not exceed the threshold requiring settlement accounting. The Company previously disclosed in its consolidated financial statements for the year ended December 31, 2015 that it expected to contribute $9.3 million to its pension plan in 2016. As of June 30, 2016, the Company has contributed $3.9 million. The Company presently expects to contribute the full amount during the remainder of 2016.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	8. Income Taxes The income tax provision 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, 2016 2015 2016 2015 Income tax at federal rate $ $ $ $ Increase (decrease) resulting from: State income taxes, net of federal income tax Permanent difference for compensation limitation — — Expense reflected in tax basis Other permanent differences Capital goods excise tax credit Total income tax provision $ $ $ $ The Company evaluates its tax positions for liability recognition. As of June 30, 2016, the Company had no unrecognized tax benefits. No interest or penalties related to income tax assessments were recognized in the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2016 and 2015. All tax years from 2012 remain open for both federal and Hawaii state tax purposes.

Stock Compensation

Stock Compensation	6 Months Ended
	Jun. 30, 2016
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 with 639,000 shares remaining to be issued at June 30, 2016. 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, 2016, all awards were restricted stock units. Activity with respect to outstanding restricted stock units for the six months ended June 30, 2016 and 2015 was as follows: Weighted- Average Grant-Date Shares Fair Value 2016 Nonvested at January 1, 2016 $ Granted Vested Forfeited Nonvested at June 30, 2016 $ 2015 Nonvested at January 1, 2015 $ Granted Vested Forfeited Nonvested at June 30, 2015 $ The Company recognized compensation expense of $0.6 million and $1.1 million for the three and six months ended June 30, 2016, respectively. 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 fair value as of the vesting date for the restricted stock units that vested during the six months ended June 30, 2016 and 2015 was $0.9 million and $2.5 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 15,234 and 35,714 for the six months ended June 30, 2016 and 2015, 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 $0.4 million and $0.9 million for the six months ended June 30, 2016 and 2015, respectively. Other than reimbursements for tax withholdings, there was no cash received under the restricted stock unit arrangements. The Company also has a performance based compensation plan. The incentive compensation is settled in March of each year for the prior year services and is based on Company performance relative to certain company specific metrics. The Company recognizes the expense during the performance period based on the expected compensation amount. The compensation for the performance period ended December 31, 2015 was settled in cash in March 2016. Beginning for the 2016 performance period, a specified portion of the compensation amount for certain employees will be settled in Company shares based on the share price at the date of settlement. Upon settlement, employees may 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 estimated performance based compensation to be settled in stock amounted to $0.2 million and $0.4 million for the three and six months ended June 30, 2016, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
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 were exercisable anytime from January 26, 2011 to the maturity on October 28, 2015. The warrants could be exercised on a cashless basis whereby a portion of the exercised warrants were tendered in lieu of payment for the exercise price. During the six months ended June 30, 2015, warrants were exercised on a cashless basis resulting in the issuance of 21,371 shares of common stock . 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, 2016 April 1, 2016 $ — $ $ Other comprehensive income (loss) for 2016 — June 30, 2016 $ — $ $ Six Months Ended June 30, 2016 January 1, 2016 $ — $ $ Other comprehensive income (loss) for 2016 — June 30, 2016 $ — $ $ 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 loss for 2015 — June 30, 2015 $ $ $ Reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015 were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Retirement plans Amortization of loss and settlement loss $ $ $ $ Income tax charge on comprehensive income Total $ $ $ $ The amortization of loss and settlement loss was recognized primarily in selling, general and administrative expense for the periods ended June 30, 2016 and 2015.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Trans-Pacific Submarine Cable In August 2014 , the Company joined several other telecommunication companies to build and operate a trans-Pacific submarine cable system. The total system cost is expected to be $235 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 in exchange for a fractional ownership in the system. The Company will recognize its fractional share of the cost. 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 the first half of 2017. As of June 30, 2016, the Company had incurred capital costs of $10.6 million primarily to the cable contractor for construction with all such costs capitalized to telephone plant under construction. 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. As of June 30, 2016, the Company had received up-front payments of $5.7 million. As provided for in one of the agreements, funds of $3.5 million were held in escrow. 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 all up-front payments is included in other liabilities. The Company will recognize revenue for the circuit, beginning upon activation of the services, on a straight-line basis over the contract term. Connect America Fund Phase II In conjunction with reforming the Universal Service Fund, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental support to broadband service providers. CAF Phase II is the long-term component of the program. In August 2015, the Company notified the FCC that it was accepting CAF Phase II support which amounts to $4.4 million in annual funding. Support is retroactive through the beginning of 2015, net of certain other receipts from the Universal Service Fund, and will continue for six years. Under the terms of the CAF Phase II, the Company will offer broadband service at 10 Mbps downstream and 1 Mbps upstream or better to approximately 11,000 eligible locations in high-cost areas in the State of Hawaii and will provide voice and broadband services at reasonable rates. For the three and six months ended June 30, 2016, the Company recognized $1.1 million and $2.2 million, respectively, in CAF Phase II funding as revenue. 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, 2016
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 and cash equivalents is measured at Level 1. 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, 2016 Liabilities - long-term debt (carried at cost) December 31, 2015 Liabilities - long-term debt (carried at cost) Fair Value Measurements The objective of the fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. 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). 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, 2016 2015 Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) — — $ $

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Information
Segment Information	13. Segment Information The Company operates in two reportable segments of telecommunications and data center. 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 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, 2016 and 2015 (dollars in thousands): Tele- Intersegment communications Data Center Elimination Total Three Months Ended June 30, 2016 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Three Months Ended June 30, 2015 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Six Months Ended June 30, 2016 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Six Months Ended June 30, 2015 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — 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, 2016 and 2015, 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, 2016 2015 2016 2015 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, 2016 2015 2016 2015 Local voice and other retail services $ $ $ $ Wholesale carrier data services Data center $ $ $ $

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
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, 2016 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 $21.5 million and $1 5.2 million at June 30, 2016 and 2015, 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 $4.3 million for the three and six months ended June 30, 2016, and $2.0 million and $4.0 million for the three and six months ended June 30, 2015, 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, 2016 2015 2016 2015 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 152,447 shares and 109,730 shares of common stock for the three and six months ended June 30, 2016, and 22,825 shares of common stock for the three months ended June 30, 2015. 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 period presented. For the six months ended June 30, 2015, there were no restricted stock units that were anti-dilutive to earnings per share.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new accounting standard which provides guidance for revenue recognition which was amended most recently in May 2016. The most recent amendments provide revised guidance on when to record revenue gross as the principal or net as the agent in accordance with the new revenue standard’s control principal and, provide for narrow scope modifications and practical expedients. The new standard, along with the amendments which must be adopted at the same time as the new standard, is effective for the Company in the first quarter of 2018 with either full retrospective or modified retrospective adoption permitted. The modified retrospective approach requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period for which the new accounting guidance is effective. Early adoption is allowed from the first quarter of 2017. The Company is currently evaluating the impact of the adoption of this accounting standard on the Company’s consolidated financial statements and financial statement disclosures. As this process is still ongoing, the effect of adoption is not yet known. In February 2016, the FASB issued a new standard for accounting for leases. The new standard requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. The new standard must be adopted using the modified retrospective approach. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the effect that the new standard will have on the Company’s consolidated financial statements and financial statement disclosures. In March 2016, the FASB issued a new standard that simplifies the accounting for employee share-based payment transactions. The new standard impacts the accounting for related income taxes, forfeitures and statutory tax withholding requirements as well as the classification of certain related payments in the statement of cash flows. The new accounting guidance is effective for the Company in the first quarter of 2017 with early adoption permitted. The adoption method required is specified as retrospective, modified retrospective or prospective for each of the various accounting provisions impacted by this new standard. The Company is evaluating the effect of the new guidance on the Company’s consolidated financial statements and financial statement disclosures. In June 2016, the FASB issued amended guidance on accounting for the impairment of financial instruments. The standard requires adoption of an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. For the Company, it is anticipated this will impact primarily the accounting for credit losses on trade receivables. The new standard is effective for the Company in the first quarter of 2020 with early adoption permitted from the first quarter of 2019. The provisions of the new standard expected to impact the Company must be adopted using the modified retrospective approach. The Company is evaluating the effect of the guidance on the Company’s consolidated financial statements and financial statement disclosures.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 2015 2016 2015 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, 2016
Receivables
Schedule of receivables	Receivables consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Customers and other $ $ Allowance for doubtful accounts $ $

Long-Lived Assets (Tables)

Long-Lived Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Long-Lived Assets
Schedule of property, plant and equipment	Property, plant and equipment consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Property, plant and equipment cost $ $ 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, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated 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	Amortization expense amounted to $0.6 million and $1.2 million for the three and six months ended June 30, 2015, respectively. Estimated amortization expense for the next five years and thereafter is as follows (dollars in thousands): Year ended December 31, 2016 (remaining months) $ 2017 2018 2019 2020 Thereafter $

Accrued Expenses and Other Cu25

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities.
Schedule of accrued expenses	Accrued expenses consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Salaries and benefits $ $ Interest Other taxes $ $
Other current liabilities	Other current liabilities consisted of the following (dollars in thousands): June 30, December 31, 2016 2015 Other postretirement benefits, current $ $ Installment financing contracts, current Other $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 Maturity 2016 2015 Term loan % June 6, 2019 $ $ Debt issue costs and 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, 2016 are as follows (dollars in thousands): Year ended December 31, 2016 (remaining months) $ 2017 2018 2019 $

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2016
Pension
Employee Benefit Plans
Schedule of components of benefit costs (income)	The following provides the components of benefit costs (income) for the three and six months ended June 30, 2016 and 2015 (dollars in thousands): Pension Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Interest cost $ $ $ $ Expected asset return Amortization of (gain) loss Net periodic benefit income Settlement loss — — Total benefit (income) expense $ $ $ $
Other Postretirement Benefits
Employee Benefit Plans
Schedule of components of benefit costs (income)	Other Postretirement Benefits Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Service cost $ $ $ $ Interest cost Amortization of loss Total benefit cost $ $ $ $

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2016
Income Taxes
Schedule of reconciliation of income tax expense	The income tax provision 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, 2016 2015 2016 2015 Income tax at federal rate $ $ $ $ Increase (decrease) resulting from: State income taxes, net of federal income tax Permanent difference for compensation limitation — — Expense reflected in tax basis Other permanent differences Capital goods excise tax credit Total income tax provision $ $ $ $

Stock Compensation (Tables)

Stock Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock Compensation
Schedule of restricted stock units	Weighted- Average Grant-Date Shares Fair Value 2016 Nonvested at January 1, 2016 $ Granted Vested Forfeited Nonvested at June 30, 2016 $ 2015 Nonvested at January 1, 2015 $ Granted Vested Forfeited Nonvested at June 30, 2015 $

Stockholder's Equity (Tables)

Stockholder's Equity (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 April 1, 2016 $ — $ $ Other comprehensive income (loss) for 2016 — June 30, 2016 $ — $ $ Six Months Ended June 30, 2016 January 1, 2016 $ — $ $ Other comprehensive income (loss) for 2016 — June 30, 2016 $ — $ $ 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 loss for 2015 — June 30, 2015 $ $ $
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, 2016 and 2015 were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Retirement plans Amortization of loss and settlement loss $ $ $ $ Income tax charge on comprehensive income Total $ $ $ $

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 Liabilities - long-term debt (carried at cost) December 31, 2015 Liabilities - long-term debt (carried at cost)
Schedule of liabilities measured at fair value on a recurring basis	A summary is as follows (dollars in thousands): June 30, December 31, 2016 2015 Liability value measurements using: Quoted prices in active markets for identical liabilities (Level 1) $ — $ — Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) — — $ $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2016 and 2015 (dollars in thousands): Tele- Intersegment communications Data Center Elimination Total Three Months Ended June 30, 2016 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Three Months Ended June 30, 2015 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Six Months Ended June 30, 2016 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures — Six Months Ended June 30, 2015 Operating revenues $ $ $ $ Depreciation and amortization — Operating income (loss) — Capital expenditures —
Reconciliation of total operating income to the consolidated statement of income	For the three and six months ended June 30, 2016 and 2015, 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, 2016 2015 2016 2015 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, 2016 2015 2016 2015 Local voice and other retail services $ $ $ $ Wholesale carrier data services Data center $ $ $ $

Description of Business (Detail

Description of Business (Details)	6 Months Ended
	Jun. 30, 2016subsidiary
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 Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2016USD ($)itemshares	Jun. 30, 2015USD ($)shares
Cash and Cash Equivalents
Number of banks in which the entity has its majority cash balances held in demand deposit accounts | item			1
Funds released from restricted cash account | $				$ 400
Supplemental Non-Cash Investing and Financing Activities
Accounts payable | $			$ 21,500	15,200
Taxes Collected from Customers
Excise taxes and Hawaii Public Utility Commission fees | $	$ 2,000	$ 2,000	$ 4,300	$ 4,000
Denominator used to compute basic and diluted earnings per share
Basic earnings per share - weighted average shares	11,511,591	10,797,111	11,493,712	10,744,944
Effect of dilutive securities:
Employee and director restricted stock units (in shares)	14,259	25,878	29,503	72,367
Warrants (in shares)		435,189		444,224
Diluted earnings per share - weighted average shares	11,525,850	11,258,178	11,523,215	11,261,535
Shares attributable to restricted stock units excluded from computation of weighted average dilutive shares	152,447	22,825	109,730	0

Receivables (Details)

Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Receivables
Customers and other	$ 33,275	$ 36,667
Allowance for doubtful accounts	(4,155)	(3,931)
Receivables, net	$ 29,120	$ 32,736

Long-Lived Assets (Details)

Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, plant and equipment
Property, plant and equipment cost	$ 989,256		$ 989,256		$ 937,927
Less accumulated depreciation	399,705		399,705		358,820
Total property, plant and equipment, net	589,551		589,551		$ 579,107
Depreciation expense	$ 22,000	$ 21,300	$ 43,300	$ 42,000

Long-Lived Assets (Intangible A

Long-Lived Assets (Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Long-Lived Assets
Amortization expense	$ 500	$ 600	$ 1,100	$ 1,200
Subject to amortization
Gross Carrying Value	22,029		22,029		$ 22,029
Accumulated Amortization	15,550		15,550		14,501
Net Carrying Value	6,479		6,479		7,528
Not subject to amortization
Carrying Value	27,300		27,300		27,300
Total intangible assets
Gross Carrying Value	49,329		49,329		49,329
Accumulated Amortization	15,550		15,550		14,501
Net Carrying Value	33,779		33,779		34,828
Estimated amortization expense
2016 (remaining months)	1,051		1,051
2,017	1,703		1,703
2,018	1,307		1,307
2,019	930		930
2,020	574		574
Thereafter	914		914
Net Carrying Value	6,479		6,479		7,528
Brand name
Not subject to amortization
Carrying Value	27,300		27,300		27,300
Customer relationships
Subject to amortization
Gross Carrying Value	21,709		21,709		21,709
Accumulated Amortization	15,268		15,268		14,238
Net Carrying Value	6,441		6,441		7,471
Total intangible assets
Accumulated Amortization	15,268		15,268		14,238
Estimated amortization expense
Net Carrying Value	6,441		6,441		7,471
Trade name and other
Subject to amortization
Gross Carrying Value	320		320		320
Accumulated Amortization	282		282		263
Net Carrying Value	38		38		57
Total intangible assets
Accumulated Amortization	282		282		263
Estimated amortization expense
Net Carrying Value	$ 38		$ 38		$ 57

Accrued Expenses and Other Cu38

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued expenses
Salaries and benefits	$ 12,889	$ 12,185
Interest	2,631	1,262
Other taxes	1,041	1,044
Accrued expenses	16,561	14,491
Other current liabilities
Other postretirement benefits, current	2,929	2,929
Installment financing contracts, current	2,370	1,849
Other	1,006	1,154
Other current liabilities	$ 6,305	$ 5,932

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Long-term debt
Long-term debt	$ 291,638,000		$ 291,638,000
Current	3,000,000		3,000,000		$ 3,000,000
Noncurrent	282,161,000		282,161,000		283,046,000
Maturities of Long-term Debt [Abstract]
2016 (remaining months)	1,500,000		1,500,000
2,017	3,000,000		3,000,000
2,018	3,000,000		3,000,000
2,019	284,138,000		284,138,000
Total	291,638,000		291,638,000
Capitalized Interest
Interest capitalized	400,000	$ 300,000	700,000	$ 500,000
Term loan
Long-term debt
Long-term debt	$ 291,638,000		$ 291,638,000		293,138,000
Interest Rate (as a percent)	5.25%		5.25%
Original issue discount	$ (6,477,000)		$ (6,477,000)		(7,092,000)
Total	285,161,000		285,161,000		286,046,000
Quarterly principal payments			$ 800,000
Excess cash flow used to prepay debt					0
Covenant, interest rate margin increase, hypothetical impact of adverse change in debt rating			0.25%
Deferred finance costs	400,000		$ 400,000
Arrangement fee and legal costs	300,000
Maturities of Long-term Debt [Abstract]
Total	$ 291,638,000		$ 291,638,000		$ 293,138,000
Term loan | Maximum
Long-term debt
Percentage of excess cash flow used to prepay the debt			75.00%
Term loan | Prime rate
Long-term debt
Variable rate basis			prime rate
Margin (as a percent)			3.25%
Term loan | Eurocurrency rate
Long-term debt
Interest Rate (as a percent)	5.25%		5.25%
Variable rate basis			one, two, three or six months Eurocurrency rate
Margin (as a percent)			4.25%
Term loan | Scenario, Period One
Long-term debt
Maximum allowable leverage ratio			3
Term loan | Scenario, Period Two
Long-term debt
Maximum allowable leverage ratio			2.75
Term loan | Scenario, Period Three
Long-term debt
Maximum allowable leverage ratio			2.50
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	$ 30,000,000		$ 30,000,000
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		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Pension and Other Postretirement Benefits
Net periodic benefit cost (income)	$ (553)	$ (1,343)		$ (1,106)	$ (2,721)
Settlement loss		1,397			2,248
Discount rate used to measure the plan obligations (as percent)			3.57%
Other comprehensive income due to the results of fair value of plan assets		3,900			$ 1,700
Actuarial assumptions:
Discount rate (as a percent)			3.54%		4.09%
Union employees
Pension and Other Postretirement Benefits
Lump-sum benefits to plan participants in full settlement of obligations		13,700
Non-union employees
Pension and Other Postretirement Benefits
Lump-sum benefits to plan participants in full settlement of obligations					$ 600
Pension
Pension and Other Postretirement Benefits
Interest cost	1,996	1,984		3,992	4,057
Expected asset return	(2,678)	(3,366)		(5,355)	(6,760)
Amortization of (gain) loss	129	39		257	(18)
Total benefit income	(553)	54		(1,106)	(473)
Expected company contribution						$ 9,300
Company contribution				3,900
Pension | Union employees
Pension and Other Postretirement Benefits
Lump-sum benefits to plan participants in full settlement of obligations					19,700
Other Postretirement Benefits
Pension and Other Postretirement Benefits
Service cost	259	259		518	518
Interest cost	655	589		1,310	1,178
Amortization of (gain) loss	119	149		237	299
Net periodic benefit cost (income)	$ 1,033	$ 997		$ 2,065	$ 1,995

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes
Statutory federal income tax rate (as a percent)			34.00%
Income tax at federal rate	$ 818	$ 373	$ 906	$ 914
Increase (decrease) resulting from:
State income taxes, net of federal income tax	134	46	146	113
Permanent difference for compensation limitation		104		228
Expense reflected in tax basis	144	211	160	211
Other permanent differences	101	49	105	154
Capital goods excise tax credit	(237)	(140)	(251)	(363)
Total income tax provision	960	643	1,066	1,257
Unrecognized Tax Benefits	0		0
Interest or penalties related to tax assessments recognized	$ 0	$ 0	$ 0	$ 0

Stock Compensation (Details)

Stock Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Option Plan
Number of shares issuable under the plan	1,400,000		1,400,000
Shares remaining to be issued	639,000		639,000
Compensation expense	$ 600	$ 500	$ 1,100	$ 900
Payments for employees' tax obligations			351	928
Cash received under all share-based arrangements			0
Restricted Stock Units
Stock Option Plan
Fair value of restricted stock units vested			$ 900	$ 2,500
Shares withheld to cover withholding tax of unit holders			15,234	35,714
Payments for employees' tax obligations			$ 400	$ 900
Performance Shares
Stock Option Plan
Compensation expense	$ 200		$ 400

Stock Compensation (RSU Activit

Stock Compensation (RSU Activity) (Details) - Restricted Stock Units - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Shares
Nonvested at the beginning of the period (in shares)	174,518	245,752
Granted (in shares)	121,724	140,909
Vested (in shares)	(60,425)	(107,788)
Forfeited (in shares)	(7,941)	(100,053)
Nonvested at the end of the period (in shares)	227,876	178,820
Weighted-Average Grant-Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 26	$ 27
Granted (in dollars per share)	25	26
Vested (in dollars per share)	25	28
Forfeited (in dollars per share)	26	25
Nonvested at the end of the period (in dollars per share)	$ 26	$ 26

Stockholder's Equity (Details)

Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2010
Accumulated other comprehensive income (loss)
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
Warrants exercised				238,697
Warrants exercised value				$ 3,300
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ (29,235)	$ (25,184)	$ (29,388)	(23,947)
Other comprehensive income (loss), net of tax	153	2,520	306	1,283
Balance at the end of the period	(29,082)	(22,664)	(29,082)	(22,664)
Unrealized Gain (Loss) on Investments
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period		(62)		(64)
Other comprehensive income (loss), net of tax		(2)
Balance at the end of the period		(64)		(64)
Retirement plans
Components of accumulated other comprehensive income (loss)
Balance at the beginning of the period	(29,235)	(25,122)	(29,388)	(23,883)
Other comprehensive income (loss), net of tax	153	2,522	306	1,283
Balance at the end of the period	$ (29,082)	$ (22,600)	$ (29,082)	$ (22,600)

Stockholder's Equity (Reclassif

Stockholder's Equity (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax charge on comprehensive income	$ (94)	$ (1,571)	$ (188)	$ (792)
Retirement plans | Reclassifications out of other comprehensive income (loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of loss and settlement loss	247	1,585	494	2,529
Income tax charge on comprehensive income	(94)	(602)	(188)	(961)
Total	$ 153	$ 983	$ 306	$ 1,568

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 31, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)item	Aug. 31, 2014USD ($)
Jointly Owned Utility Plant Interests [Line Items]
CAF annual funding	$ 4.4
Period of support service			6 years
Downstream broadband service data transfer rate (Mbps)			10
Number Of Eligible Locations To Offer Broadband | item			11,000
Revenue recognized from CAF first year funds		$ 1.1	$ 2.2
Jointly owned utility plant
Jointly Owned Utility Plant Interests [Line Items]
Cost of construction				$ 235
Company investment in construction costs of plant				$ 25
Paid to the cable contractor for the cable build		10.6	$ 10.6
Period of up-front payment received			25 years
Proceeds from sale of capacity			$ 27
Up Front Payment Received			5.7
Escrow deposit		$ 3.5	$ 3.5
Minimum
Jointly Owned Utility Plant Interests [Line Items]
Upstream broadband service data transfer rate (Mbps)			1

Fair Value of Financial Instr47

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Recurring
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	$ 292,367	$ 291,306
Significant other observable inputs (Level 2) | Recurring
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	292,367	291,306
Carrying Value
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	285,161	286,046
Fair Value
Fair Value of Financial Instruments
Liabilities - long-term debt (carried at cost)	$ 292,367	$ 291,306

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)
Segment Information
Operating revenues	$ 99,541	$ 96,187	$ 198,335	$ 193,303
Depreciation and amortization	22,493	21,941	44,443	43,221
Operating income (loss)	6,889	5,260	11,389	11,181
Capital expenditures	29,247	23,724	$ 53,835	46,955
Number of reportable segments | segment			2
Tele-communications
Segment Information
Operating revenues	96,855	93,812	$ 193,040	188,649
Depreciation and amortization	21,964	21,374	43,390	42,102
Operating income (loss)	7,140	5,570	11,752	11,818
Capital expenditures	28,677	23,625	53,089	46,377
Data Center
Segment Information
Operating revenues	3,211	2,784	6,268	5,381
Depreciation and amortization	529	567	1,053	1,119
Operating income (loss)	(251)	(310)	(363)	(637)
Capital expenditures	570	99	746	578
Intersegment Elimination
Segment Information
Operating revenues	$ (525)	$ (409)	$ (973)	$ (727)

Segment Information (Operating

Segment Information (Operating Income Reconciliation ) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Reconciliation of total operating income to the consolidated statement of income
Operating income	$ 6,889	$ 5,260	$ 11,389	$ 11,181
Income before income tax provision	2,405	1,098	2,665	2,689
Operating segment
Reconciliation of total operating income to the consolidated statement of income
Operating income	6,889	5,260	11,389	11,181
Corporate other expense	(4,484)	(4,162)	(8,724)	(8,492)
Income before income tax provision	$ 2,405	$ 1,098	$ 2,665	$ 2,689

Segment Information (Revenue by

Segment Information (Revenue by Product Group) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Information on revenue, net of intersegment eliminations, by product group
Revenue	$ 99,541	$ 96,187	$ 198,335	$ 193,303
Local voice and other retail services
Information on revenue, net of intersegment eliminations, by product group
Revenue	83,158	79,614	165,133	159,800
Wholesale carrier data services
Information on revenue, net of intersegment eliminations, by product group
Revenue	13,172	13,789	26,934	28,122
Data center
Information on revenue, net of intersegment eliminations, by product group
Revenue	$ 3,211	$ 2,784	$ 6,268	$ 5,381