Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Lumos Networks Corp. | ' |
Entity Central Index Key | '0001520744 | ' |
Trading Symbol | 'LMOS | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,388,788 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $9,804 | $14,114 |
Marketable securities | 36,596 | 38,480 |
Restricted cash | 4,324 | 4,324 |
Accounts receivable, net of allowance of $1,369 ($1,485 in 2013) | 22,687 | 22,917 |
Other receivables | 820 | 1,588 |
Income tax receivable | 795 | 1,116 |
Prepaid expenses and other | 4,301 | 3,960 |
Deferred income taxes | 7,189 | 7,289 |
Total Current Assets | 86,516 | 93,788 |
Securities and Investments | 767 | 699 |
Property, Plant and Equipment | ' | ' |
Land and buildings | 19,648 | 19,561 |
Network plant and equipment | 483,905 | 474,010 |
Furniture, fixtures and other equipment | 44,275 | 34,549 |
Total in service | 547,828 | 528,120 |
Under construction | 41,243 | 25,889 |
Property, plant and equipment, gross | 589,071 | 554,009 |
Less accumulated depreciation and amortization | 192,125 | 175,286 |
Total Property, Plant and Equipment, net | 396,946 | 378,723 |
Other Assets | ' | ' |
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $85,493 ($81,600 in 2013) | 20,477 | 25,071 |
Deferred charges and other assets | 7,965 | 7,722 |
Total Other Assets | 128,739 | 133,090 |
Total Assets | 612,968 | 606,300 |
Current Liabilities | ' | ' |
Current portion of long-term debt | 10,250 | 6,688 |
Accounts payable | 12,090 | 13,076 |
Dividends payable | 3,131 | 3,091 |
Advance billings and customer deposits | 13,771 | 13,502 |
Accrued compensation | 1,295 | 2,185 |
Accrued operating taxes | 4,394 | 4,375 |
Other accrued liabilities | 3,981 | 3,992 |
Total Current Liabilities | 48,912 | 46,909 |
Long-term Liabilities | ' | ' |
Long-term debt, excluding current portion | 367,194 | 373,290 |
Retirement benefits | 16,782 | 16,848 |
Deferred income taxes | 84,273 | 79,087 |
Other long-term liabilities | 2,775 | 2,832 |
Income tax payable | 419 | 328 |
Total Long-term Liabilities | 471,443 | 472,385 |
Commitments and Contingencies | ' | ' |
Equity | ' | ' |
Preferred stock, par value $0.01 per share, authorized 100 shares, none issued | ' | ' |
Common stock, par value $0.01 per share, authorized 55,000 shares; 22,379 shares issued and 22,376 shares outstanding (22,158 shares issued and 22,109 shares outstanding in 2013) | 224 | 222 |
Additional paid in capital | 141,567 | 138,166 |
Treasury stock, 3 shares at cost (49 shares in 2013) | -9 | -404 |
Accumulated deficit | -45,905 | -47,578 |
Accumulated other comprehensive loss, net of tax | -3,992 | -4,073 |
Total Lumos Networks Corp. Stockholders' Equity | 91,885 | 86,333 |
Noncontrolling Interests | 728 | 673 |
Total Equity | 92,613 | 87,006 |
Total Liabilities and Equity | $612,968 | $606,300 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Accounts receivable, allowance | $1,369 | $1,485 |
Other intangibles, accumulated amortization | $85,493 | $81,600 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 22,379,000 | 22,158,000 |
Common stock, shares outstanding | 22,376,000 | 22,109,000 |
Treasury stock, shares | 3,000 | 49,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements Of Income [Abstract] | ' | ' | ' | ' |
Operating revenues | $50,165 | $52,311 | $100,255 | $104,845 |
Operating Expenses | ' | ' | ' | ' |
Network access costs | 10,190 | 10,501 | 20,904 | 21,655 |
Selling, general and administrative | 18,487 | 18,896 | 36,419 | 36,916 |
Depreciation and amortization | 11,210 | 10,796 | 21,869 | 20,359 |
Accretion of asset retirement obligations | 30 | 33 | 57 | 64 |
Restructuring charges | ' | ' | ' | 40 |
Total Operating Expenses, net | 39,917 | 40,226 | 79,249 | 79,034 |
Operating Income | 10,248 | 12,085 | 21,006 | 25,811 |
Other Income (Expenses) | ' | ' | ' | ' |
Interest expense | -3,812 | -3,406 | -7,786 | -6,534 |
(Loss) gain on interest rate swap derivatives | -16 | 267 | 93 | 454 |
Other income (expense), net | 170 | -907 | 350 | -882 |
Total Other Expenses, net | -3,658 | -4,046 | -7,343 | -6,962 |
Income Before Income Taxes | 6,590 | 8,039 | 13,663 | 18,849 |
Income Tax Expense | 2,711 | 3,241 | 5,689 | 7,573 |
Net Income | 3,879 | 4,798 | 7,974 | 11,276 |
Net Income Attributable to Noncontrolling Interests | -33 | -36 | -66 | -105 |
Net Income Attributable to Lumos Networks Corp. | $3,846 | $4,762 | $7,908 | $11,171 |
Basic and Diluted Earnings per Common Share Attributable to Lumos Networks Corp. | ' | ' | ' | ' |
Earnings per share - basic | $0.17 | $0.22 | $0.36 | $0.51 |
Earnings per share-diluted | $0.17 | $0.22 | $0.35 | $0.51 |
Cash Dividends Declared per Share - Common Stock | $0.14 | $0.14 | $0.28 | $0.28 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $3,879 | $4,798 | $7,974 | $11,276 |
Other Comprehensive Income, Net of Tax: | ' | ' | ' | ' |
Reclassification adjustment for amortization of actuarial loss from defined benefit plans included in net income, net of $25 and $120 of income taxes for the three months ended June 30, 2014 and 2013, respectively, and $50 and $241 of income taxes for the six months ended June 30, 2014 and 2013, respectively (see Note 2) | 39 | 189 | 78 | 378 |
Unrealized (loss) gain on available-for-sale securities, net of ($8) and $2 of income taxes for the three and six months ended June 30, 2014, respectively | -12 | ' | 3 | ' |
Other Comprehensive Income, Net of Tax | 27 | 189 | 81 | 378 |
Total Comprehensive Income | 3,906 | 4,987 | 8,055 | 11,654 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | -33 | -36 | -66 | -105 |
Comprehensive Income Attributable to Lumos Networks Corp. | $3,873 | $4,951 | $7,989 | $11,549 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Deferred income tax asset, Reclassification adjustment for amortization of actuarial loss from defined benefit plans | $25 | $120 | $50 | $241 |
Deferred income tax asset, Unrealized gain on available-for-sale securities | ($8) | ' | $2 | ' |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows from Operating Activities: | ' | ' |
Net income | $7,974,000 | $11,276,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 17,275,000 | 15,447,000 |
Amortization | 4,594,000 | 4,912,000 |
Accretion of asset retirement obligations | 57,000 | 64,000 |
Deferred income taxes | 5,383,000 | 6,765,000 |
Gain on interest rate swap derivatives | -93,000 | -454,000 |
Equity-based compensation expense | 1,986,000 | 2,353,000 |
Amortization of debt issuance costs | 738,000 | 472,000 |
Write off of unamortized debt issuance costs | ' | 890,000 |
Retirement benefits, net of contributions and distributions | -813,000 | -208,000 |
Excess tax benefits from share-based compensation | -149,000 | -179,000 |
Other | 128,000 | -84,000 |
Changes in assets and liabilities from operations: | ' | ' |
Decrease (increase) in accounts receivable | 230,000 | -2,889,000 |
Decrease in other current assets | 418,000 | 1,475,000 |
Changes in income taxes | 411,000 | -110,000 |
Increase (decrease) in accounts payable | 178,000 | -4,358,000 |
(Decrease) increase in other current liabilities | -299,000 | 60,000 |
Net Cash Provided by Operating Activities | 38,018,000 | 35,432,000 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of property, plant and equipment | -37,288,000 | -26,724,000 |
Broadband network expansion funded by stimulus grant | 196,000 | -30,000 |
Purchases of available-for-sale marketable securities | -12,461,000 | ' |
Proceeds from sale or maturity of available-for-sale marketable securities | 14,174,000 | ' |
Change in restricted cash | ' | 979,000 |
Cash reimbursement received from broadband stimulus grant | 0 | 979,000 |
Net Cash Used in Investing Activities | -35,379,000 | -24,796,000 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | ' | 375,000,000 |
Payment of debt issuance costs | ' | -4,849,000 |
Principal payments on senior secured term loans | -1,375,000 | -307,500,000 |
Borrowings from revolving credit facility | ' | 15,000,000 |
Principal payments on revolving credit facility | ' | -18,521,000 |
Termination payments of interest rate swap derivatives | ' | -858,000 |
Cash dividends paid on common stock | -6,195,000 | -6,071,000 |
Principal payments under capital lease obligations | -1,145,000 | -194,000 |
Proceeds from stock option exercises and employee stock purchase plan | 1,630,000 | 101,000 |
Excess tax benefits from share-based compensation | 149,000 | 179,000 |
Other | -13,000 | -91,000 |
Net Cash (Used in) Provided by Financing Activities | -6,949,000 | 52,196,000 |
(Decrease) increase in cash and cash equivalents | -4,310,000 | 62,832,000 |
Cash and Cash Equivalents: | ' | ' |
Beginning of Period | 14,114,000 | 2,000 |
End of Period | $9,804,000 | $62,834,000 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2014 | |
Organization [Abstract] | ' |
Organization | ' |
Note 1. Organization | |
Lumos Networks Corp. (“Lumos Networks” or the “Company”) is a fiber-based bandwidth infrastructure and service provider in the Mid-Atlantic region with a network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company serves carrier, business and residential customers over its fiber network offering data, voice and IP services. The Company’s principal products and services include Multiprotocol Label Switching (“MPLS”) based Ethernet, Metro Ethernet (“Metro E”), Fiber to the Cell (“FTTC”) wireless backhaul and fiber transport services, wavelength transport services, IP services and other voice services. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | |||||||||||||||
Summary Of Significant Accounting Policies | ' | |||||||||||||||
Note 2. Summary of Significant Accounting Policies | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, and all of Lumos Networks Operating Company’s wholly-owned subsidiaries and those limited liability corporations where Lumos Networks Operating Company or certain of its subsidiaries, as managing member, exercise control. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2014 and 2013 contain all adjustments necessary to present fairly in all material respects the financial position as of June 30, 2014, and the results of operations and cash flows for all periods presented on the respective condensed consolidated financial statements included herein. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||
Accounting Estimates | ||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of interest rate swap derivatives, deferred tax assets, marketable securities, asset retirement obligations and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
The Company recognizes revenue when services are rendered or when products are delivered, installed and functional, as applicable. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. | ||||||||||||||||
The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services, including wireless roamer management, to other carriers. Revenues for equipment sales are recognized at the point of sale. | ||||||||||||||||
The Company periodically makes claims for recovery of access charges on certain minutes of use terminated by the Company on behalf of other carriers. The Company recognizes such revenue in the period in which it is determined that the amounts can be estimated and collection is reasonably assured. | ||||||||||||||||
Cash Equivalents and Marketable Securities | ||||||||||||||||
The Company considers its investment in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company determines the appropriate classification of investment securities at the time of purchase and reevaluates this determination at the end of each reporting period. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
Restricted Cash | ||||||||||||||||
During 2010, the Company received a federal broadband stimulus award to bring broadband services and infrastructure to Alleghany County, Virginia. The total project is $16.1 million, of which 50% (approximately $8 million) is being funded by a grant from the federal government. The project is expected to be completed before September 30, 2015. The Company was required to deposit 100% of its portion for the grant (approximately $8 million) into a pledged account in advance of any reimbursements, which can be drawn down ratably following the grant reimbursement approvals, which are contingent on adherence to the program requirements. The Company did not receive any cash reimbursements during the three or six months ended June 30, 2014. As of June 30, 2014, the Company had a $0.4 million receivable for the reimbursable portion of the qualified recoverable expenditures and the Company’s pledged account balance was $4.3 million. The escrow account is a non-interest bearing account with the Company’s primary commercial bank. | ||||||||||||||||
Trade Accounts Receivable | ||||||||||||||||
The Company sells its services to other communication carriers and to business and residential customers primarily in Virginia and West Virginia and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company has credit and collection policies to maximize collection of trade receivables and requires deposits on certain sales. The Company maintains an allowance for doubtful accounts based on a review of specific customers with large receivable balances and for the remaining customer receivables the Company uses historical results, current and expected trends and changes in credit policies. Management believes the allowance adequately covers all anticipated losses with respect to trade receivables. Actual credit losses could differ from such estimates. The Company includes bad debt expense in selling, general and administrative expense in the condensed consolidated statements of income. Bad debt expense for the three months ended June 30, 2014 and 2013 was $0.3 million and $0.1 million, respectively, and bad debt expense for the six months ended June 30, 2014 and 2013 was $0.5 million and $0.1 million, respectively. The Company’s allowance for doubtful accounts was $1.4 million and $1.5 million as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
The following table presents a roll-forward of the Company’s allowance for doubtful accounts from December 31, 2013 to June 30, 2014: | ||||||||||||||||
Additions | ||||||||||||||||
(In thousands) | 31-Dec-13 | Charged to Expense | Charged to Other Accounts | Deductions | 30-Jun-14 | |||||||||||
Allowance for doubtful accounts | $ | 1,485 | $ | 483 | $ | 33 | $ | -632 | $ | 1,369 | ||||||
Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) | ||||||||||||||||
Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of June 30, 2014 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. | ||||||||||||||||
Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful lives of the assets, which the Company periodically reviews and updates based on historical experiences and future expectations. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. | ||||||||||||||||
Intangibles with a finite life are classified as other intangibles on the condensed consolidated balance sheets. At June 30, 2014 and December 31, 2013, other intangibles were comprised of the following: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||
Customer relationships | 5 to 15 yrs | $ | 103,108 | $ | -83,895 | $ | 103,153 | $ | -79,399 | |||||||
Trademarks and franchise rights | 10 to 15 yrs | 2,862 | -1,598 | 3,518 | -2,201 | |||||||||||
Total | $ | 105,970 | $ | -85,493 | $ | 106,671 | $ | -81,600 | ||||||||
The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. | ||||||||||||||||
The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset, and the Company periodically reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the three or six months ended June 30, 2014. Amortization expense for the three months ended June 30, 2014 and 2013 was $2.3 million and $2.5 million, respectively, and amortization expense for the six months ended June 30, 2014 and 2013 was $4.6 million and $4.9 million, respectively. | ||||||||||||||||
Amortization expense for the remainder of 2014 and for the next five years is expected to be as follows: | ||||||||||||||||
(In thousands) | Customer Relationships | Trademarks and Franchise Rights | Total | |||||||||||||
Remainder of 2014 | $ | 4,512 | $ | 81 | $ | 4,593 | ||||||||||
2015 | 4,644 | 163 | 4,807 | |||||||||||||
2016 | 2,412 | 163 | 2,575 | |||||||||||||
2017 | 2,093 | 163 | 2,256 | |||||||||||||
2018 | 1,781 | 163 | 1,944 | |||||||||||||
2019 | 1,513 | 152 | 1,665 | |||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||
Goodwill and certain trademarks are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company believes there have been no events or circumstances to cause management to evaluate the carrying amount of goodwill during the six months ended June 30, 2014. | ||||||||||||||||
Pension Benefits and Retirement Benefits Other Than Pensions | ||||||||||||||||
The Company sponsors a non-contributory defined benefit pension plan (the “Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits are being accrued by participants for services rendered beyond that date. | ||||||||||||||||
For the three and six months ended June 30, 2014 and 2013, the components of the Company’s net periodic benefit cost (income) for the Pension Plan were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | ||||||||
Interest cost | 656 | 608 | 1,312 | 1,216 | ||||||||||||
Expected return on plan assets | -1,093 | -975 | -2,186 | -1,951 | ||||||||||||
Amortization of loss | - | 229 | - | 459 | ||||||||||||
Net periodic benefit cost (income) | $ | -437 | $ | -138 | $ | -874 | $ | -276 | ||||||||
Pension plan assets were valued at $59.1 million and $57.8 million at June 30, 2014 and December 31, 2013, respectively. No funding contributions were made in the six months ended June 30, 2014, and the Company does not expect to make a funding contribution during the remainder of 2014. | ||||||||||||||||
The Company also provides certain health care and life insurance benefits for retired employees that meet eligibility requirements through two qualified nonpension postretirement benefit plans (the “Other Postretirement Benefit Plans”). For the three and six months ended June 30, 2014 and 2013, the components of the Company’s net periodic benefit cost for its Other Postretirement Benefit Plans were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | 13 | $ | 23 | $ | 26 | $ | 46 | ||||||||
Interest cost | 147 | 121 | 294 | 242 | ||||||||||||
Amortization of loss | 8 | 7 | 16 | 14 | ||||||||||||
Net periodic benefit cost | $ | 168 | $ | 151 | $ | 336 | $ | 302 | ||||||||
In July 2014, the Company notified participants that health care benefits under the Other Postretirement Benefit Plans will be discontinued effective December 31, 2014. The Company expects to recognize a gain upon settlement of the obligation associated with the plan but has not yet determined the amount or the timing of which it will be recognized in the consolidated financial statements. | ||||||||||||||||
The Company recognized expense for certain nonqualified pension plans for each of the three months ended June 30, 2014 and 2013 of $0.1 million, and less than $0.1 million of this expense for each period relates to the amortization of actuarial loss. Expense for nonqualified pension plans for each of the six months ended June 30, 2014 and 2013 was $0.2 million, and $0.1 million of this expense relates to the amortization of actuarial loss. | ||||||||||||||||
The total amount reclassified out of accumulated other comprehensive income related to amortization of actuarial losses for retirement plans for the three months ended June 30, 2014 and 2013 was $0.1 million and $0.3 million, respectively, and $0.1 million and $0.6 million for the six months ended June 30, 2014 and 2013, respectively, all of which has been reclassified to selling, general and administrative expenses on the condensed consolidated statements of income. | ||||||||||||||||
Equity-based Compensation | ||||||||||||||||
The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation. Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the condensed consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | ||||||||||||||||
The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares is adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 10). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. | ||||||||||||||||
Total equity-based compensation expense related to all of the share-based awards and the Company’s 401(k) matching contributions was $1.2 million and $1.3 million for the three months ended June 30, 2014 and 2013, respectively, and $2.0 million and $2.4 million for the six months ended June 30, 2014 and 2013, respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of income. | ||||||||||||||||
Future charges for equity-based compensation related to instruments outstanding at June 30, 2014 for the remainder of 2014 and for the years 2015 through 2019 are estimated to be $1.7 million, $2.8 million, $1.7 million, $0.8 million, $0.1 million and less than $0.1 million, respectively. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the amount 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. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. | ||||||||||||||||
U.S. GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: | ||||||||||||||||
· | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
· | Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||||
· | Level 3 – Unobservable inputs for the asset or liability. | |||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 was effective prospectively for public entities for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Prospective application applies to unrecognized tax benefits that exist at the date of adoption and those that arise after adoption. The Company’s adoption of this ASU in the first quarter of 2014 did not have a material impact on its condensed consolidated balance sheet as of June 30, 2014. | ||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and disclosures. | ||||||||||||||||
Cash_Equivalents_And_Marketabl
Cash Equivalents And Marketable Securities | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Cash Equivalents And Marketable Securities [Abstract] | ' | |||||
Cash Equivalents And Marketable Securities | ' | |||||
Note 3. Cash Equivalents and Marketable Securities | ||||||
The Company’s cash equivalents and available-for-sale securities reported at fair value as of June 30, 2014 and December 31, 2013 are summarized below. | ||||||
(In thousands) | 30-Jun-14 | 31-Dec-13 | ||||
Cash equivalents: | ||||||
Money market mutual funds | $ | 25 | $ | 267 | ||
Corporate debt securities | - | 1,106 | ||||
Total cash equivalents | 25 | 1,373 | ||||
Marketable securities: | ||||||
Certificates of deposit | 1,315 | 2,000 | ||||
Commercial paper | 3,248 | 5,246 | ||||
Debt securities issued by U.S. Government agencies | 6,441 | 8,483 | ||||
Municipal bonds | 855 | 500 | ||||
Corporate debt securities | 24,737 | 22,251 | ||||
Total marketable securities, available-for-sale | 36,596 | 38,480 | ||||
Total cash equivalents and marketable securities | $ | 36,621 | $ | 39,853 | ||
At June 30, 2014 and December 31, 2013, the carrying values of the investments included in cash and cash equivalents approximated fair value. The amortized cost basis of the available-for-sale securities was not materially different from the aggregate fair value. | ||||||
The contractual maturities of the Company’s available-for-sale debt securities were as follows as of June 30, 2014: | ||||||
(In thousands) | Total | |||||
Due in one year or less | $ | 22,555 | ||||
Due after one year through two years | 14,041 | |||||
Total debt securities | $ | 36,596 | ||||
The Company received total proceeds of $6.4 million and $14.2 million from the sale or maturity of available-for-sale marketable securities during the three and six months ended June 30, 2014, respectively. The Company did not recognize any material realized net gains or losses and net unrealized holding gains on available-for-sale securities were less than $0.1 million for each of the three and six months ended June 30, 2014. Unrealized holding gains or losses are included in accumulated other comprehensive loss on the condensed consolidated balance sheets. | ||||||
Disclosures_About_Segments_Of_
Disclosures About Segments Of An Enterprise And Related Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | |||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information | ' | |||||||||||||||
Note 4. Disclosures About Segments of an Enterprise and Related Information | ||||||||||||||||
The Company’s operating segments generally align with its major product and service offerings and coincide with the way that the Company’s chief operating decision makers measure performance and allocate resources. The Company’s chief operating decision makers are its Chief Executive Officer and its Chief Financial Officer (collectively, the “CODMs”). In 2013, the Company had three reportable operating segments: strategic data, legacy voice and access. In January 2014, the Company completed a business reorganization to further focus on the carrier and enterprise business markets while maintaining its commitment to residential and small business customers. Accordingly, the Company has revised its reportable segments to reflect the way the CODMs are managing the business and measuring performance under the new organizational structure. The Company’s current reportable operating segments are data, residential and small business (“R&SB”) and RLEC access. A general description of the products and services offered and the customers served by each of these segments is as follows: | ||||||||||||||||
· | Data: This segment includes the Company’s enterprise data, transport, and FTTC product and service groups. These businesses primarily serve enterprise and carrier customers utilizing the Company’s network of long-haul fiber, metro Ethernet and Ethernet rings located primarily in Virginia and West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky. | |||||||||||||||
· | R&SB: This segment includes the following voice products: local lines, primary rate interface (“PRI”), long distance, toll and directory advertising and other voice services (excluding voice over IP (“VoIP”) which are typically provided to enterprise customers and are included in the Company’s data segment) and the following IP services products: broadband XL, DSL, integrated access and video. These products are sold to residential and small business customers on the Company’s network and within the Company’s footprint. This segment also provides carrier customers access to our network located in competitive markets. | |||||||||||||||
· | RLEC Access: This segment provides carrier customers access to the Company’s network within the Company’s RLEC footprint and primarily includes switched access services. | |||||||||||||||
Summarized financial information concerning the Company’s reportable segments is presented in the following table, including restated segment results for the three and six months ended June 30, 2013 based on the restructuring of the Company’s operating segments in the first quarter of 2014: | ||||||||||||||||
(In thousands) | Data | R&SB | RLEC Access | Corporate (Unallocated) | Total | |||||||||||
For the three months ended June 30, 2014: | ||||||||||||||||
Operating revenues | $ | 26,707 | $ | 18,290 | $ | 5,168 | $ | - | $ | 50,165 | ||||||
Network access costs | 3,919 | 6,271 | - | - | 10,190 | |||||||||||
Network operating and selling costs | 5,761 | 4,302 | 367 | - | 10,430 | |||||||||||
Other general and administrative expenses | 3,632 | 2,487 | 703 | 1,235 | 8,057 | |||||||||||
Adjusted EBITDA(1) | 13,395 | 5,230 | 4,098 | - | 22,723 | |||||||||||
Capital expenditures | 13,457 | 2,599 | - | 3,115 | 19,171 | |||||||||||
For the six months ended June 30, 2014: | ||||||||||||||||
Operating revenues | $ | 52,844 | $ | 36,937 | $ | 10,474 | $ | - | $ | 100,255 | ||||||
Network access costs | 8,093 | 12,811 | - | - | 20,904 | |||||||||||
Network operating and selling costs | 11,683 | 8,417 | 693 | - | 20,793 | |||||||||||
Other general and administrative expenses | 6,956 | 4,935 | 1,377 | 2,358 | 15,626 | |||||||||||
Adjusted EBITDA(1) | 26,112 | 10,774 | 8,404 | - | 45,290 | |||||||||||
Capital expenditures | 24,794 | 4,987 | - | 7,507 | 37,288 | |||||||||||
(In thousands) | Data | R&SB | RLEC Access | Corporate (Unallocated) | Total | |||||||||||
For the three months ended June 30, 2013: | ||||||||||||||||
Operating revenues | $ | 25,706 | $ | 20,453 | $ | 6,152 | $ | - | $ | 52,311 | ||||||
Network access costs | 3,879 | 6,622 | - | - | 10,501 | |||||||||||
Network operating and selling costs | 5,239 | 4,903 | 538 | - | 10,680 | |||||||||||
Other general and administrative expenses | 3,233 | 2,572 | 774 | 1,637 | 8,216 | |||||||||||
Adjusted EBITDA(1) | 13,355 | 6,356 | 4,840 | - | 24,551 | |||||||||||
Capital expenditures | 9,998 | 1,536 | 454 | -296 | 11,692 | |||||||||||
For the six months ended June 30, 2013: | ||||||||||||||||
Operating revenues | $ | 51,075 | $ | 41,510 | $ | 12,260 | $ | - | $ | 104,845 | ||||||
Network access costs | 7,910 | 13,745 | - | - | 21,655 | |||||||||||
Network operating and selling costs | 10,245 | 9,477 | 999 | - | 20,721 | |||||||||||
Other general and administrative expenses | 6,441 | 5,235 | 1,547 | 2,972 | 16,195 | |||||||||||
Adjusted EBITDA(1) | 26,479 | 13,053 | 9,714 | - | 49,246 | |||||||||||
Capital expenditures | 20,334 | 3,101 | 623 | 2,666 | 26,724 | |||||||||||
(1) The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. | ||||||||||||||||
The Company’s CODMs do not currently review total assets by segment since the majority of the assets are shared by the segments and centrally-managed. However, total assets may be allocated to the segments in the future should the CODMs decide to manage the business in that manner. Management does review capital expenditures using success-based metrics that allow the Company to determine which segments product groups are driving investment in the network. Depreciation and amortization expense and certain corporate expenses that are excluded from the measurement of segment profit or loss are not allocated to the operating segments. | ||||||||||||||||
The following table provides a reconciliation of operating income to Adjusted EBITDA, as defined by the Company, on a consolidated basis for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Operating income | $ | 10,248 | $ | 12,085 | $ | 21,006 | $ | 25,811 | ||||||||
Depreciation and amortization and accretion | ||||||||||||||||
of asset retirement obligations | 11,240 | 10,829 | 21,926 | 20,423 | ||||||||||||
Sub-total: | 21,488 | 22,914 | 42,932 | 46,234 | ||||||||||||
Amortization of actuarial losses | 64 | 309 | 128 | 619 | ||||||||||||
Equity-based compensation | 1,152 | 1,328 | 1,986 | 2,353 | ||||||||||||
Restructuring charges | - | - | - | 40 | ||||||||||||
Employee separation charges | 19 | - | 244 | - | ||||||||||||
Adjusted EBITDA | $ | 22,723 | $ | 24,551 | $ | 45,290 | $ | 49,246 | ||||||||
Two of the Company’s carrier customers individually accounted for 10% and 9% of the Company’s total revenues for the three and six months ended June 30, 2014 and individually accounted for 7% and 10% of revenues for the three and six months ended June 30, 2013. Revenues from these carrier customers were derived primarily from network access, data transport and fiber to the cell site services. | ||||||||||||||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Long-Term Debt [Abstract] | ' | ||||||
Long-Term Debt | ' | ||||||
Note 5. Long-Term Debt | |||||||
As of June 30, 2014 and December 31, 2013, the Company’s outstanding long-term debt consisted of the following: | |||||||
(In thousands) | 30-Jun-14 | 31-Dec-13 | |||||
Credit facility | $ | 372,250 | $ | 373,625 | |||
Capital lease obligations | 5,194 | 6,353 | |||||
Long-term debt | 377,444 | 379,978 | |||||
Less: current portion of long-term debt | 10,250 | 6,688 | |||||
Long-term debt, excluding current portion | $ | 367,194 | $ | 373,290 | |||
Credit Facility | |||||||
On April 30, 2013, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, entered into a $425 million credit facility (the “Credit Facility”). The Credit Facility consists of a $100 million senior secured five-year term loan (the “Term Loan A”), a $275 million senior secured six-year term loan (the “Term Loan B”); and a $50 million senior secured five-year revolving credit facility (the “Revolver”). The proceeds from the Term Loan A and the Term Loan B were used to retire the prior first lien credit facility outstanding amount of approximately $311 million and to pay closing costs and other expenses related to the transaction, with the remaining proceeds available for normal course capital expenditures and working capital purposes. As of June 30, 2014, no borrowings were outstanding under the Revolver. | |||||||
Pricing of the Credit Facility is currently LIBOR plus 3.25% for the Revolver and Term Loan A and LIBOR plus 3.50% for Term Loan B. The Credit Facility does not require a minimum LIBOR rate. The Term Loan A matures in 2018 with quarterly payments of 1.25% per annum from September 30, 2014 through December 31, 2016 and 2.50% per annum thereafter. The Term Loan B matures in 2019 with quarterly payments of 1% per annum that began on September 30, 2013. The Revolver matures in full in 2018. The Credit Facility is secured by a first priority pledge of substantially all property and assets of Lumos Networks Operating Company and all material subsidiaries, as guarantors, excluding the RLECs. | |||||||
The Credit Facility includes various restrictions and conditions, including a maximum leverage ratio of 4.50:1.00 for 2014, 4.25:1.00 for 2015 and 4.00:1.00 thereafter. The Credit Facility also sets a minimum interest rate coverage ratio of 3.25:1.00. At June 30, 2014, the Company’s leverage ratio was 4.09:1.00 and its interest coverage ratio was 6.64:1.00. The Company was in compliance with its debt covenants as of June 30, 2014. The Credit Facility has a maximum distributable amount available for restricted payments, including the payment of dividends. The distributable amount was initially set at $12 million and is reduced by restricted payments and certain other items set forth in the Credit Agreement. The distributable amount is increased annually by the greater of $12 million or 75% of free cash flow (as defined under the Credit Agreement). The distributable amount as of June 30, 2014 was $11.7 million. | |||||||
In accordance with the terms of the Credit Facility, the Company entered into interest rate swap agreements with a combined notional amount of 50 percent of the aggregate outstanding balance of Term Loan A and Term Loan B. Under the interest rate swap agreements, the Company swaps one-month LIBOR with a fixed rate of approximately 0.5% for certain agreements entered into in 2012 and 0.8% for certain agreements entered into in 2013. The combined notional amount under the swap agreements was $186.1 million at June 30, 2014. The Company recognized a loss on interest rate swap derivatives of less than $0.1 million for the three months ended June 30, 2014 and a gain of $0.3 million for the three months ended June 30, 2013. The Company recognized gains on interest rate swap derivatives of $0.1 million and $0.5 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
Total unamortized debt issuance costs associated with the Credit Facility were $5.9 million and $6.6 million as of June 30, 2014 and December 31, 2013, respectively, which amounts are included in deferred charges and other assets on the condensed consolidated balance sheets and are being amortized to interest expense over the life of the debt using the effective interest method. Amortization of debt issuance costs was $0.4 million and $0.3 million for the three months ended June 30, 2014 and 2013, respectively, and $0.7 million and $0.5 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
The Company receives patronage credits from CoBank and certain other of the Farm Credit System lending institutions (collectively referred to as “patronage banks”) which are not reflected in the interest rates above. The patronage banks hold a portion of the credit facility and are cooperative banks that are required to distribute their profits to their members. Patronage credits are calculated based on the patronage banks’ ownership percentage of the credit facility and are received by the Company as either a cash distribution or as equity in the patronage banks. These credits are recorded in the condensed consolidated statement of income as an offset to interest expense. The Patronage credits were $0.2 million and $0.3 million for the three months ended June 30, 2014 and 2013, respectively, and $0.3 million and $0.6 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
The aggregate maturities of the Term Loan A and Term Loan B under the Credit Facility are $3.9 million in the remainder of 2014, $7.7 million in 2015, $7.7 million in 2016, $12.8 million in 2017, $80.2 million in 2018 and $259.9 million thereafter. The Revolver under the Credit Facility, under which no borrowings are outstanding as of June 30, 2014, matures in full in 2018. | |||||||
The Company’s blended average interest rate on its long-term debt for the six months ended June 30, 2014 was 4.22%. | |||||||
Capital lease obligations | |||||||
In addition to the long-term debt discussed above, the Company has capital leases on vehicles with original lease terms of four to five years. At June 30, 2014, the carrying value and accumulated amortization of the related assets were $3.1 million and $1.8 million, respectively. The Company also has a financing arrangement with a provider of software services related to the upgrading of internal infrastructure, including certain software licenses, which is classified as a capital lease. The agreement extends through 2015 with payments due annually. As of June 30, 2014, the carrying value and accumulated depreciation of the related assets were $5.9 million and $1.2 million, respectively. As of June 30, 2014, the combined total net present value of the Company’s future minimum lease payments is $5.2 million and the principal portion of these capital lease obligations is due as follows: $0.3 million in the remainder of 2014, $2.4 million in 2015, $2.3 million in 2016, $0.1 million in 2017 and $0.1 million thereafter. | |||||||
Supplementary_Disclosures_Of_C
Supplementary Disclosures Of Cash Flow Information | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | ||||||
Supplementary Disclosures Of Cash Flow Information | ' | ||||||
Note 6. Supplementary Disclosures of Cash Flow Information | |||||||
The following information is presented as supplementary disclosures for the condensed consolidated statements of cash flows for the six months ended June 30, 2014 and 2013: | |||||||
Six Months Ended June 30, | |||||||
(In thousands) | 2014 | 2013 | |||||
Cash payments for: | |||||||
Interest (net of amounts capitalized) | $ | 6,198 | $ | 5,793 | |||
Income taxes | 141 | 933 | |||||
Cash receipts for: | |||||||
Income tax refunds | 216 | 16 | |||||
Supplemental investing and financing activities: | |||||||
Additions to property, plant and equipment included in accounts payable and other accrued liabilities | 1,795 | 4,989 | |||||
Obligations incurred under capital leases | 36 | 6,384 | |||||
Dividends declared on common stock not paid | 3,131 | 3,062 | |||||
Cash payments for interest for the six months ended June 30, 2014 and 2013 in the table above are net of $0.9 million and $0.7 million, respectively, of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $0.2 million and $0.1 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||||||
Fair Value Of Financial Instruments | ' | ||||||||||||
Note 7. Fair Value of Financial Instruments | |||||||||||||
The Company’s financial instruments consist of cash and cash equivalents, marketable securities, restricted cash, accounts receivable, accounts payable, capital lease obligations (including the current portion), accrued liabilities, interest rate swap derivatives and the Credit Facility (including the current portion) as of June 30, 2014 and December 31, 2013. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, capital lease obligations and accrued liabilities approximated their fair values at June 30, 2014 and December 31, 2013. Marketable securities and interest rate swap derivatives are recorded in the condensed consolidated balance sheets at fair value (see Notes 3 and 5). | |||||||||||||
The following tables present the placement in the fair value hierarchy of financial assets and liabilities that are measured at fair value on a recurring basis at June 30, 2014 and December 31, 2013: | |||||||||||||
Fair Value Measurements at | |||||||||||||
30-Jun-14 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Financial Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 25 | $ | - | $ | - | $ | 25 | |||||
Total cash equivalents | 25 | - | - | 25 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | - | 1,315 | - | 1,315 | |||||||||
Commercial paper | - | 3,248 | - | 3,248 | |||||||||
Debt securities issued by U.S. Government agencies | - | 6,441 | - | 6,441 | |||||||||
Municipal bonds | - | 855 | - | 855 | |||||||||
Corporate debt securities | - | 24,737 | - | 24,737 | |||||||||
Total marketable securities | - | 36,596 | - | 36,596 | |||||||||
Total financial assets | $ | 25 | $ | 36,596 | $ | - | $ | 36,621 | |||||
Financial Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,064 | $ | - | $ | 1,064 | |||||
Total financial liabilities | $ | - | $ | 1,064 | $ | - | $ | 1,064 | |||||
Fair Value Measurements at | |||||||||||||
31-Dec-13 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Financial Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 267 | $ | - | $ | - | $ | 267 | |||||
Corporate debt securities | - | 1,106 | - | 1,106 | |||||||||
Total cash equivalents | 267 | 1,106 | - | 1,373 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | - | 2,000 | - | 2,000 | |||||||||
Commercial paper | - | 5,246 | - | 5,246 | |||||||||
Debt securities issued by U.S. Government agencies | - | 8,483 | - | 8,483 | |||||||||
Municipal bonds | - | 500 | - | 500 | |||||||||
Corporate debt securities | - | 22,251 | - | 22,251 | |||||||||
Total marketable securities | - | 38,480 | - | 38,480 | |||||||||
Total financial assets | $ | 267 | $ | 39,586 | $ | - | $ | 39,853 | |||||
Financial Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Total financial liabilities | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
The fair value of certificates of deposits and corporate, municipal and U.S. government debt securities are provided by a third-party pricing service and are estimated using pricing models. The underlying inputs to the pricing models are directly observable from active markets. However, the pricing models used do entail a certain amount of subjectivity and therefore differing judgments in how the underlying inputs are modeled could result in different estimates of fair value. As such, we classify these fair value measurements as Level 2 within the fair value hierarchy. The fair value of interest rate derivatives were derived based on bid prices obtained from the administrative agents as of the measurement date. | |||||||||||||
The following table summarizes the carrying amounts and estimated fair values of the components included in the Company’s long-term debt, including the current portion. | |||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||
(Level 2) | (Level 2) | ||||||||||||
Credit Facility | $ | 372,250 | $ | 378,717 | $ | 373,625 | $ | 366,955 | |||||
Capital lease obligations | 5,194 | 5,194 | 6,353 | 6,353 | |||||||||
The fair value of the Credit Facility was estimated based on an internal discounted cash flows analysis that schedules out the estimated cash flows for the future debt and interest repayments and applies a discount factor that is adjusted to reflect estimated changes in market conditions and credit factors. | |||||||||||||
The Company also has certain non-marketable long-term investments for which it is not practicable to estimate fair value with a total carrying value of $0.8 million as of June 30, 2014 and $0.7 million as of December 31, 2013, respectively, of which $0.7 million and $0.6 million represents the Company’s investment in CoBank for the respective periods. This investment is primarily related to patronage distributions of restricted equity and is a required investment related to the portion of the Credit Facility held by CoBank. This investment is carried under the cost method. | |||||||||||||
Equity
Equity | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Equity | ' | |||||||||||||||||||||||||||
Note 8. Equity | ||||||||||||||||||||||||||||
Below is a summary of the activity and status of equity as of and for the six months ended June 30, 2014: | ||||||||||||||||||||||||||||
(In thousands, except per share amounts) | Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated | Accumulated Other Comprehensive Loss, net of tax | Total Lumos Networks Corp. Stockholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Deficit | ||||||||||||||||||||||||||||
Balance, December 31, 2013 | 22,158 | 49 | $ | 222 | $ | 138,166 | $ | -404 | $ | -47,578 | $ | -4,073 | $ | 86,333 | $ | 673 | $ | 87,006 | ||||||||||
Net income attributable to | ||||||||||||||||||||||||||||
Lumos Networks Corp. | 7,908 | 7,908 | 7,908 | |||||||||||||||||||||||||
Other comprehensive income, | ||||||||||||||||||||||||||||
net of tax | 81 | 81 | 81 | |||||||||||||||||||||||||
Equity-based compensation expense | 1,532 | 1,532 | 1,532 | |||||||||||||||||||||||||
Excess tax benefits from share-based | ||||||||||||||||||||||||||||
compensation | 149 | 149 | 149 | |||||||||||||||||||||||||
Restricted shares issued, shares | ||||||||||||||||||||||||||||
issued through the employee | ||||||||||||||||||||||||||||
stock purchase plan and | ||||||||||||||||||||||||||||
401(k) matching contributions | ||||||||||||||||||||||||||||
(net of shares reacquired | ||||||||||||||||||||||||||||
through restricted stock forfeits) | 93 | -46 | 2 | 128 | 395 | 525 | 525 | |||||||||||||||||||||
Stock option exercises | 128 | 1,592 | 1,592 | 1,592 | ||||||||||||||||||||||||
Cash dividends declared ($0.28 | ||||||||||||||||||||||||||||
per share) | -6,235 | -6,235 | -6,235 | |||||||||||||||||||||||||
Net income attributable to | ||||||||||||||||||||||||||||
noncontrolling interests | - | 55 | 55 | |||||||||||||||||||||||||
Balance, June 30, 2014 | 22,379 | 3 | $ | 224 | $ | 141,567 | $ | -9 | $ | -45,905 | $ | -3,992 | $ | 91,885 | $ | 728 | $ | 92,613 | ||||||||||
On July 29, 2014, the Company’s board of directors declared a quarterly dividend on its common stock in the amount of $0.14 per share, which is to be paid on October 9, 2014 to stockholders of record on September 11, 2014. | ||||||||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Note 9. Earnings per Share | |||||||||||||
The Company computes basic earnings per share by dividing net income attributable to Lumos Networks Corp. applicable to common shares by the weighted average number of common shares outstanding during the period. The impact on earnings per share of nonvested restricted shares outstanding that contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares is included in the computation of basic earnings per share pursuant to the two-class method. The Company issues restricted shares from time to time with vesting terms that are based on achievement of certain stock price performance conditions. These nonvested restricted shares are excluded from the computation of basic and diluted weighted average shares until the period in which the applicable performance or market conditions are attained. The Company uses the treasury stock method to determine the number of potentially dilutive common shares from stock options and nonvested restricted shares during the period. | |||||||||||||
The computations of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 are detailed in the following table. | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||||
Net income attributable to Lumos Networks Corp. | $ | 3,846 | $ | 4,762 | $ | 7,908 | $ | 11,171 | |||||
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -94 | -134 | -191 | -276 | |||||||||
Numerator for basic and diluted earnings per common share | 3,752 | 4,628 | 7,717 | 10,895 | |||||||||
Denominator: | |||||||||||||
Weighted average basic shares outstanding | 22,268 | 21,962 | 22,209 | 21,824 | |||||||||
Less: weighted average participating securities and nonvested performance-based restricted shares | -566 | -725 | -557 | -612 | |||||||||
Denominator for basic earnings per common share | 21,702 | 21,237 | 21,652 | 21,212 | |||||||||
Plus: potentially dilutive restricted shares and stock options | 412 | 229 | 360 | 125 | |||||||||
Denominator for diluted earnings per common share | 22,114 | 21,466 | 22,012 | 21,337 | |||||||||
Earnings per share - basic | $ | 0.17 | $ | 0.22 | $ | 0.36 | $ | 0.51 | |||||
Earnings per share - diluted | $ | 0.17 | $ | 0.22 | $ | 0.35 | $ | 0.51 | |||||
For the three months ended June 30, 2014 and 2013, the denominator for diluted earnings per common share excludes 1,150,712 shares and 578,868 shares, respectively, related to stock options and nonvested restricted stock which would be antidilutive for each period. For the six months ended June 30, 2014 and 2013, the denominator for diluted earnings per common share excludes 508,403 shares and 1,687,938 shares, respectively, related to stock options and nonvested restricted stock which would be antidilutive for each period. | |||||||||||||
Stock_Plans
Stock Plans | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Stock Plans [Abstract] | ' | |||||||||
Stock Plans | ' | |||||||||
Note 10. Stock Plans | ||||||||||
The Company has an Equity and Cash Incentive Plan administered by the Compensation Committee of the Company’s board of directors, which permits the grant of long-term incentives to employees and non-employee directors, including stock options, stock appreciation rights, restricted stock awards, restricted stock units, incentive awards, other stock-based awards and dividend equivalents. The Equity and Cash Incentive Plan was amended in May 2014 to increase the share reserve by 1,500,000 common shares. As of June 30, 2014, the maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan was 5,500,000 and 1,595,512 securities remained available for issuance under the plan. Upon the exercise of stock options or upon the grant of restricted stock under the Equity and Cash Incentive Plan, new common shares are issued or treasury stock is reissued. | ||||||||||
The Company issued 165,149 stock options and 126,340 shares of restricted stock under the Equity and Cash Incentive Plan during the six months ended June 30, 2014. Options issued to employees with service-only conditions generally vest on a graded vesting schedule over a four to five year period. Options generally cliff vest on the first anniversary of the grant date for non-employee directors. Restricted shares generally cliff vest on the third anniversary of the grant date for employees and generally cliff vest on the first anniversary of the grant date for non-employee directors. Some of the outstanding restricted stock awards vest on a graded vesting schedule over a five year period. | ||||||||||
Dividend rights applicable to restricted stock with service-only vesting conditions are equivalent to the Company’s common stock. Restricted stock awards that vest based on achievement of a market condition are not eligible for dividends during the vesting period unless the Compensation Committee determines otherwise. | ||||||||||
Stock options must be granted under the Equity and Cash Incentive Plan at not less than 100% of fair value on the date of grant and have a maximum life of ten years from the date of grant. Options and other awards under the Equity and Cash Incentive Plan may be exercised in compliance with such requirements as determined by a committee of the board of directors. Substantially all stock options outstanding were issued at a strike price equal to or greater than the fair value on the date of grant. | ||||||||||
The fair value of each option award with service-only vesting conditions is estimated on the grant date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected terminations. The fair value of each restricted stock award with service-only vesting conditions is based on the closing price of the Company’s common stock on the grant date. The fair value for option awards and restricted stock awards with vesting that is conditional on achievement of market conditions is adjusted to reflect the probability of satisfying the market condition based on a Monte Carlo valuation model. | ||||||||||
The summary of the activity and status of the Company’s stock options for the six months ended June 30, 2014 is as follows: | ||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||
Stock options outstanding at December 31, 2013 | 2,266 | $ | 12.19 | |||||||
Granted during the period | 165 | 15.55 | ||||||||
Exercised during the period | -128 | 12.52 | ||||||||
Forfeited during the period | -7 | 11.80 | ||||||||
Expired during the period | - | - | ||||||||
Stock options outstanding at June 30, 2014 | 2,296 | $ | 12.41 | 7.3 years | $ | 5,850 | ||||
Stock options exercisable at June 30, 2014 | 1,283 | $ | 12.51 | 6.4 years | $ | 3,098 | ||||
Total stock options outstanding, vested and expected to vest at June 30, 2014 | 2,205 | $ | 12.44 | $ | 5,554 | |||||
The weighted-average grant date fair value per share of stock options granted during the six months ended June 30, 2014 was $6.76. The total fair value of options that vested during the six months ended June 30, 2014 was $0.4 million. As of June 30, 2014, there was $2.4 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 3.2 years. | ||||||||||
The summary of the activity and status of the Company’s restricted stock for the six months ended June 30, 2014, is as follows: | ||||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Grant Date Fair Value per Share | ||||||||
Restricted stock outstanding at December 31, 2013 | 560 | $ | 11.93 | |||||||
Granted during the period | 126 | 15.58 | ||||||||
Vested during the period | -79 | 11.75 | ||||||||
Forfeited during the period | -24 | 11.44 | ||||||||
Restricted stock outstanding at June 30, 2014 | 583 | $ | 12.77 | |||||||
As of June 30, 2014, there was $4.5 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 2.3 years. | ||||||||||
In addition to the Equity and Cash Incentive Plan discussed above, the Company has an employee stock purchase plan which commenced in 2011 with 100,000 shares available. New common shares will be issued for purchases under this plan. Shares are priced at 85% of the closing price on the last trading day of the month and settle on the second business day of the following month. During the six months ended June 30, 2014, 2,796 shares were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan was not material in the six months ended June 30, 2014. | ||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 11. Income Taxes | |
Income tax expense for the six months ended June 30, 2014 and 2013 was $5.7 million and $7.6 million, respectively, which represents the federal statutory tax rate applied to pre-tax income and the effects of state income taxes and certain non-deductible charges for each period. The Company’s recurring non-deductible expenses relate primarily to certain non-cash equity-based compensation. | |
At June 30, 2014, the Company had federal net operating losses (“NOLs”) of $11.8 million, net of adjustments for unrecognized income tax benefits, and state NOLs of $15.0 million. The Company’s NOLs, if not utilized to reduce taxable income in future periods, will expire in varying amounts from 2022 through 2034. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. | |
While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than its accrued position. Accordingly, additional provisions could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. In general, tax years 2010 and thereafter remain open and subject to federal and state audit examinations. | |
Commitments_And_Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
Note 12. Commitments and Contingencies | |
The Company periodically makes claims or receives disputes and is involved in legal actions related to billings to other carriers for access to the Company’s network. The Company does not recognize revenue related to such matters until collection of the claims is reasonably assured. In addition to this, the Company periodically disputes access charges that are assessed by other companies with which the Company interconnects and is involved in other disputes and legal and tax proceedings and filings arising from normal business activities. | |
The Company is involved in routine litigation and disputes in the ordinary course of its business. While the results of litigation and disputes are inherently unpredictable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows, and believes that adequate provision for any probable and estimable losses has been made in the Company’s condensed consolidated financial statements. | |
The Company has purchase commitments relating to capital projects totaling $10.7 million as of June 30, 2014, which are expected to be satisfied during the remainder of 2014. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | |||||||||||||||
Principles Of Consolidation And Basis Of Presentation | ' | |||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company, Lumos Networks Operating Company, a wholly-owned subsidiary of the Company, and all of Lumos Networks Operating Company’s wholly-owned subsidiaries and those limited liability corporations where Lumos Networks Operating Company or certain of its subsidiaries, as managing member, exercise control. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2014 and 2013 contain all adjustments necessary to present fairly in all material respects the financial position as of June 30, 2014, and the results of operations and cash flows for all periods presented on the respective condensed consolidated financial statements included herein. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||
Accounting Estimates | ' | |||||||||||||||
Accounting Estimates | ||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the valuation of interest rate swap derivatives, deferred tax assets, marketable securities, asset retirement obligations and equity-based compensation; goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. | ||||||||||||||||
Revenue Recognition | ' | |||||||||||||||
Revenue Recognition | ||||||||||||||||
The Company recognizes revenue when services are rendered or when products are delivered, installed and functional, as applicable. Certain services of the Company require payment in advance of service performance. In such cases, the Company records a service liability at the time of billing and subsequently recognizes revenue ratably over the service period. The Company bills customers certain transactional taxes on service revenues. These transactional taxes are not included in reported revenues as they are recognized as liabilities at the time customers are billed. | ||||||||||||||||
The Company earns revenue by providing services through access to and usage of its networks. Local service revenues are recognized as services are provided. Carrier data revenues are earned by providing switched access and other switched and dedicated services, including wireless roamer management, to other carriers. Revenues for equipment sales are recognized at the point of sale. | ||||||||||||||||
The Company periodically makes claims for recovery of access charges on certain minutes of use terminated by the Company on behalf of other carriers. The Company recognizes such revenue in the period in which it is determined that the amounts can be estimated and collection is reasonably assured. | ||||||||||||||||
Cash Equivalents And Marketable Securities | ' | |||||||||||||||
Cash Equivalents and Marketable Securities | ||||||||||||||||
The Company considers its investment in all highly liquid debt instruments with an original maturity of three months or less, when purchased, to be cash equivalents. The Company determines the appropriate classification of investment securities at the time of purchase and reevaluates this determination at the end of each reporting period. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in other comprehensive income or loss, net of tax. All of the Company’s debt securities not classified as cash equivalents were classified as available-for-sale securities as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
Restricted Cash | ' | |||||||||||||||
Restricted Cash | ||||||||||||||||
During 2010, the Company received a federal broadband stimulus award to bring broadband services and infrastructure to Alleghany County, Virginia. The total project is $16.1 million, of which 50% (approximately $8 million) is being funded by a grant from the federal government. The project is expected to be completed before September 30, 2015. The Company was required to deposit 100% of its portion for the grant (approximately $8 million) into a pledged account in advance of any reimbursements, which can be drawn down ratably following the grant reimbursement approvals, which are contingent on adherence to the program requirements. The Company did not receive any cash reimbursements during the three or six months ended June 30, 2014. As of June 30, 2014, the Company had a $0.4 million receivable for the reimbursable portion of the qualified recoverable expenditures and the Company’s pledged account balance was $4.3 million. The escrow account is a non-interest bearing account with the Company’s primary commercial bank. | ||||||||||||||||
Trade Accounts Receivable | ' | |||||||||||||||
Trade Accounts Receivable | ||||||||||||||||
The Company sells its services to other communication carriers and to business and residential customers primarily in Virginia and West Virginia and portions of Maryland, Pennsylvania, Ohio and Kentucky. The Company has credit and collection policies to maximize collection of trade receivables and requires deposits on certain sales. The Company maintains an allowance for doubtful accounts based on a review of specific customers with large receivable balances and for the remaining customer receivables the Company uses historical results, current and expected trends and changes in credit policies. Management believes the allowance adequately covers all anticipated losses with respect to trade receivables. Actual credit losses could differ from such estimates. The Company includes bad debt expense in selling, general and administrative expense in the condensed consolidated statements of income. Bad debt expense for the three months ended June 30, 2014 and 2013 was $0.3 million and $0.1 million, respectively, and bad debt expense for the six months ended June 30, 2014 and 2013 was $0.5 million and $0.1 million, respectively. The Company’s allowance for doubtful accounts was $1.4 million and $1.5 million as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
The following table presents a roll-forward of the Company’s allowance for doubtful accounts from December 31, 2013 to June 30, 2014: | ||||||||||||||||
Additions | ||||||||||||||||
(In thousands) | 31-Dec-13 | Charged to Expense | Charged to Other Accounts | Deductions | 30-Jun-14 | |||||||||||
Allowance for doubtful accounts | $ | 1,485 | $ | 483 | $ | 33 | $ | -632 | $ | 1,369 | ||||||
Property, Plant And Equipment And Other Long-Lived Assets (Excluding Goodwill And Indefinite-Lived Intangible Assets) | ' | |||||||||||||||
Property, Plant and Equipment and Other Long-Lived Assets (Excluding Goodwill and Indefinite-Lived Intangible Assets) | ||||||||||||||||
Property, plant and equipment, finite-lived intangible assets and long-term deferred charges are recorded at cost and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be evaluated pursuant to the subsequent measurement guidance described in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35. Impairment is determined by comparing the carrying value of these long-lived assets to management’s best estimate of future undiscounted cash flows expected to result from the use of the assets. If the carrying value exceeds the estimated undiscounted cash flows, the excess of the asset’s carrying value over the estimated fair value is recorded as an impairment charge. The Company believes that no impairment indicators exist as of June 30, 2014 that would require it to perform impairment testing for long-lived assets, including property, plant and equipment, long-term deferred charges and finite-lived intangible assets to be held and used. | ||||||||||||||||
Depreciation of property, plant and equipment is calculated on a straight-line basis over the estimated useful lives of the assets, which the Company periodically reviews and updates based on historical experiences and future expectations. Plant and equipment held under capital leases are amortized on a straight-line basis over the shorter of the lease term or estimated useful life of the asset. Amortization of assets held under capital leases, including certain software licenses, is included with depreciation expense. | ||||||||||||||||
Intangibles with a finite life are classified as other intangibles on the condensed consolidated balance sheets. At June 30, 2014 and December 31, 2013, other intangibles were comprised of the following: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||
Customer relationships | 5 to 15 yrs | $ | 103,108 | $ | -83,895 | $ | 103,153 | $ | -79,399 | |||||||
Trademarks and franchise rights | 10 to 15 yrs | 2,862 | -1,598 | 3,518 | -2,201 | |||||||||||
Total | $ | 105,970 | $ | -85,493 | $ | 106,671 | $ | -81,600 | ||||||||
The Company amortizes its finite-lived intangible assets using the straight-line method unless it determines that another systematic method is more appropriate. The amortization for certain customer relationship intangibles is being recognized using an accelerated amortization method based on the pattern of estimated earnings from these assets. | ||||||||||||||||
The estimated life of amortizable intangible assets is determined from the unique factors specific to each asset, and the Company periodically reviews and updates estimated lives based on current events and future expectations. The Company capitalizes costs incurred to renew or extend the term of a recognized intangible asset and amortizes such costs over the remaining life of the asset. No such costs were incurred during the three or six months ended June 30, 2014. Amortization expense for the three months ended June 30, 2014 and 2013 was $2.3 million and $2.5 million, respectively, and amortization expense for the six months ended June 30, 2014 and 2013 was $4.6 million and $4.9 million, respectively. | ||||||||||||||||
Amortization expense for the remainder of 2014 and for the next five years is expected to be as follows: | ||||||||||||||||
(In thousands) | Customer Relationships | Trademarks and Franchise Rights | Total | |||||||||||||
Remainder of 2014 | $ | 4,512 | $ | 81 | $ | 4,593 | ||||||||||
2015 | 4,644 | 163 | 4,807 | |||||||||||||
2016 | 2,412 | 163 | 2,575 | |||||||||||||
2017 | 2,093 | 163 | 2,256 | |||||||||||||
2018 | 1,781 | 163 | 1,944 | |||||||||||||
2019 | 1,513 | 152 | 1,665 | |||||||||||||
Goodwill And Indefinite-Lived Intangible Assets | ' | |||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||
Goodwill and certain trademarks are considered to be indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but are instead tested for impairment annually or more frequently if an event indicates that the asset might be impaired. The Company’s policy is to assess the recoverability of indefinite-lived assets annually on October 1 and whenever adverse events or changes in circumstances indicate that impairment may have occurred. The Company believes there have been no events or circumstances to cause management to evaluate the carrying amount of goodwill during the six months ended June 30, 2014. | ||||||||||||||||
Pension Benefits And Retirement Benefits Other Than Pensions | ' | |||||||||||||||
Pension Benefits and Retirement Benefits Other Than Pensions | ||||||||||||||||
The Company sponsors a non-contributory defined benefit pension plan (the “Pension Plan”) covering all employees who meet eligibility requirements and were employed prior to October 1, 2003. Pension benefits vest after five years of plan service and are based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. The Company froze the Pension Plan effective December 31, 2012. As such, no further benefits are being accrued by participants for services rendered beyond that date. | ||||||||||||||||
For the three and six months ended June 30, 2014 and 2013, the components of the Company’s net periodic benefit cost (income) for the Pension Plan were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | ||||||||
Interest cost | 656 | 608 | 1,312 | 1,216 | ||||||||||||
Expected return on plan assets | -1,093 | -975 | -2,186 | -1,951 | ||||||||||||
Amortization of loss | - | 229 | - | 459 | ||||||||||||
Net periodic benefit cost (income) | $ | -437 | $ | -138 | $ | -874 | $ | -276 | ||||||||
Pension plan assets were valued at $59.1 million and $57.8 million at June 30, 2014 and December 31, 2013, respectively. No funding contributions were made in the six months ended June 30, 2014, and the Company does not expect to make a funding contribution during the remainder of 2014. | ||||||||||||||||
The Company also provides certain health care and life insurance benefits for retired employees that meet eligibility requirements through two qualified nonpension postretirement benefit plans (the “Other Postretirement Benefit Plans”). For the three and six months ended June 30, 2014 and 2013, the components of the Company’s net periodic benefit cost for its Other Postretirement Benefit Plans were as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | 13 | $ | 23 | $ | 26 | $ | 46 | ||||||||
Interest cost | 147 | 121 | 294 | 242 | ||||||||||||
Amortization of loss | 8 | 7 | 16 | 14 | ||||||||||||
Net periodic benefit cost | $ | 168 | $ | 151 | $ | 336 | $ | 302 | ||||||||
In July 2014, the Company notified participants that health care benefits under the Other Postretirement Benefit Plans will be discontinued effective December 31, 2014. The Company expects to recognize a gain upon settlement of the obligation associated with the plan but has not yet determined the amount or the timing of which it will be recognized in the consolidated financial statements. | ||||||||||||||||
The Company recognized expense for certain nonqualified pension plans for each of the three months ended June 30, 2014 and 2013 of $0.1 million, and less than $0.1 million of this expense for each period relates to the amortization of actuarial loss. Expense for nonqualified pension plans for each of the six months ended June 30, 2014 and 2013 was $0.2 million, and $0.1 million of this expense relates to the amortization of actuarial loss. | ||||||||||||||||
The total amount reclassified out of accumulated other comprehensive income related to amortization of actuarial losses for retirement plans for the three months ended June 30, 2014 and 2013 was $0.1 million and $0.3 million, respectively, and $0.1 million and $0.6 million for the six months ended June 30, 2014 and 2013, respectively, all of which has been reclassified to selling, general and administrative expenses on the condensed consolidated statements of income. | ||||||||||||||||
Equity-Based Compensation | ' | |||||||||||||||
Equity-based Compensation | ||||||||||||||||
The Company accounts for share-based employee compensation plans under FASB ASC 718, Stock Compensation. Equity-based compensation expense from share-based equity awards is recorded with an offsetting increase to additional paid-in capital on the condensed consolidated balance sheet. For equity awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. | ||||||||||||||||
The fair value of common stock options granted with service-only conditions is estimated at the respective measurement date using the Black-Scholes option-pricing model with assumptions related to risk-free interest rate, expected volatility, dividend yield and expected term. The fair value of restricted stock awards granted with service-only conditions is estimated based on the market value of the common stock on the date of grant reduced by the present value of expected dividends as applicable. Certain stock options and restricted shares granted by the Company contain vesting provisions that are conditional on achievement of a target market price for the Company’s common stock. The grant date fair value of these options and restricted shares is adjusted to reflect the probability of the achievement of the market condition based on management’s best estimate using a Monte Carlo model (see Note 10). The Company initially recognizes the related compensation cost for these awards that contain a market condition on a straight-line basis over the requisite service period as derived from the valuation model. The Company accelerates expense recognition if the market conditions are achieved prior to the end of the derived requisite service period. | ||||||||||||||||
Total equity-based compensation expense related to all of the share-based awards and the Company’s 401(k) matching contributions was $1.2 million and $1.3 million for the three months ended June 30, 2014 and 2013, respectively, and $2.0 million and $2.4 million for the six months ended June 30, 2014 and 2013, respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of income. | ||||||||||||||||
Future charges for equity-based compensation related to instruments outstanding at June 30, 2014 for the remainder of 2014 and for the years 2015 through 2019 are estimated to be $1.7 million, $2.8 million, $1.7 million, $0.8 million, $0.1 million and less than $0.1 million, respectively. | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the amount 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. When determining the fair value measurements for assets and liabilities required to be recorded at fair value or for certain financial instruments for which disclosure of fair value is required, the Company uses fair value techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. | ||||||||||||||||
U.S. GAAP establishes a fair value hierarchy with three levels of inputs that may be used to measure fair value: | ||||||||||||||||
· | Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
· | Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||||
· | Level 3 – Unobservable inputs for the asset or liability. | |||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. ASU 2013-11 was effective prospectively for public entities for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Prospective application applies to unrecognized tax benefits that exist at the date of adoption and those that arise after adoption. The Company’s adoption of this ASU in the first quarter of 2014 did not have a material impact on its condensed consolidated balance sheet as of June 30, 2014. | ||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is still evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and disclosures. | ||||||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||
Schedule Of Allowance For Doubtful Accounts | ' | |||||||||||||||
Additions | ||||||||||||||||
(In thousands) | 31-Dec-13 | Charged to Expense | Charged to Other Accounts | Deductions | 30-Jun-14 | |||||||||||
Allowance for doubtful accounts | $ | 1,485 | $ | 483 | $ | 33 | $ | -632 | $ | 1,369 | ||||||
Finite-Lived Intangibles Assets | ' | |||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
(Dollars in thousands) | Estimated Life | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||
Customer relationships | 5 to 15 yrs | $ | 103,108 | $ | -83,895 | $ | 103,153 | $ | -79,399 | |||||||
Trademarks and franchise rights | 10 to 15 yrs | 2,862 | -1,598 | 3,518 | -2,201 | |||||||||||
Total | $ | 105,970 | $ | -85,493 | $ | 106,671 | $ | -81,600 | ||||||||
Schedule Of Future Amortization Expense | ' | |||||||||||||||
(In thousands) | Customer Relationships | Trademarks and Franchise Rights | Total | |||||||||||||
Remainder of 2014 | $ | 4,512 | $ | 81 | $ | 4,593 | ||||||||||
2015 | 4,644 | 163 | 4,807 | |||||||||||||
2016 | 2,412 | 163 | 2,575 | |||||||||||||
2017 | 2,093 | 163 | 2,256 | |||||||||||||
2018 | 1,781 | 163 | 1,944 | |||||||||||||
2019 | 1,513 | 152 | 1,665 | |||||||||||||
Defined Benefit Pension Plan [Member] | ' | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||
Schedule Of Net Periodic (Benefit) Expense | ' | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | - | $ | - | $ | - | $ | - | ||||||||
Interest cost | 656 | 608 | 1,312 | 1,216 | ||||||||||||
Expected return on plan assets | -1,093 | -975 | -2,186 | -1,951 | ||||||||||||
Amortization of loss | - | 229 | - | 459 | ||||||||||||
Net periodic benefit cost (income) | $ | -437 | $ | -138 | $ | -874 | $ | -276 | ||||||||
Other Postretirement Benefit Plans [Member] | ' | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||
Schedule Of Net Periodic (Benefit) Expense | ' | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost | $ | 13 | $ | 23 | $ | 26 | $ | 46 | ||||||||
Interest cost | 147 | 121 | 294 | 242 | ||||||||||||
Amortization of loss | 8 | 7 | 16 | 14 | ||||||||||||
Net periodic benefit cost | $ | 168 | $ | 151 | $ | 336 | $ | 302 | ||||||||
Cash_Equivalents_And_Marketabl1
Cash Equivalents And Marketable Securities (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Cash Equivalents And Marketable Securities [Abstract] | ' | |||||
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | ' | |||||
(In thousands) | 30-Jun-14 | 31-Dec-13 | ||||
Cash equivalents: | ||||||
Money market mutual funds | $ | 25 | $ | 267 | ||
Corporate debt securities | - | 1,106 | ||||
Total cash equivalents | 25 | 1,373 | ||||
Marketable securities: | ||||||
Certificates of deposit | 1,315 | 2,000 | ||||
Commercial paper | 3,248 | 5,246 | ||||
Debt securities issued by U.S. Government agencies | 6,441 | 8,483 | ||||
Municipal bonds | 855 | 500 | ||||
Corporate debt securities | 24,737 | 22,251 | ||||
Total marketable securities, available-for-sale | 36,596 | 38,480 | ||||
Total cash equivalents and marketable securities | $ | 36,621 | $ | 39,853 | ||
Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities | ' | |||||
(In thousands) | Total | |||||
Due in one year or less | $ | 22,555 | ||||
Due after one year through two years | 14,041 | |||||
Total debt securities | $ | 36,596 | ||||
Disclosures_About_Segments_Of_1
Disclosures About Segments Of An Enterprise And Related Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | |||||||||||||||
Summarized Financial Information Of Reportable Segments | ' | |||||||||||||||
(In thousands) | Data | R&SB | RLEC Access | Corporate (Unallocated) | Total | |||||||||||
For the three months ended June 30, 2014: | ||||||||||||||||
Operating revenues | $ | 26,707 | $ | 18,290 | $ | 5,168 | $ | - | $ | 50,165 | ||||||
Network access costs | 3,919 | 6,271 | - | - | 10,190 | |||||||||||
Network operating and selling costs | 5,761 | 4,302 | 367 | - | 10,430 | |||||||||||
Other general and administrative expenses | 3,632 | 2,487 | 703 | 1,235 | 8,057 | |||||||||||
Adjusted EBITDA(1) | 13,395 | 5,230 | 4,098 | - | 22,723 | |||||||||||
Capital expenditures | 13,457 | 2,599 | - | 3,115 | 19,171 | |||||||||||
For the six months ended June 30, 2014: | ||||||||||||||||
Operating revenues | $ | 52,844 | $ | 36,937 | $ | 10,474 | $ | - | $ | 100,255 | ||||||
Network access costs | 8,093 | 12,811 | - | - | 20,904 | |||||||||||
Network operating and selling costs | 11,683 | 8,417 | 693 | - | 20,793 | |||||||||||
Other general and administrative expenses | 6,956 | 4,935 | 1,377 | 2,358 | 15,626 | |||||||||||
Adjusted EBITDA(1) | 26,112 | 10,774 | 8,404 | - | 45,290 | |||||||||||
Capital expenditures | 24,794 | 4,987 | - | 7,507 | 37,288 | |||||||||||
(In thousands) | Data | R&SB | RLEC Access | Corporate (Unallocated) | Total | |||||||||||
For the three months ended June 30, 2013: | ||||||||||||||||
Operating revenues | $ | 25,706 | $ | 20,453 | $ | 6,152 | $ | - | $ | 52,311 | ||||||
Network access costs | 3,879 | 6,622 | - | - | 10,501 | |||||||||||
Network operating and selling costs | 5,239 | 4,903 | 538 | - | 10,680 | |||||||||||
Other general and administrative expenses | 3,233 | 2,572 | 774 | 1,637 | 8,216 | |||||||||||
Adjusted EBITDA(1) | 13,355 | 6,356 | 4,840 | - | 24,551 | |||||||||||
Capital expenditures | 9,998 | 1,536 | 454 | -296 | 11,692 | |||||||||||
For the six months ended June 30, 2013: | ||||||||||||||||
Operating revenues | $ | 51,075 | $ | 41,510 | $ | 12,260 | $ | - | $ | 104,845 | ||||||
Network access costs | 7,910 | 13,745 | - | - | 21,655 | |||||||||||
Network operating and selling costs | 10,245 | 9,477 | 999 | - | 20,721 | |||||||||||
Other general and administrative expenses | 6,441 | 5,235 | 1,547 | 2,972 | 16,195 | |||||||||||
Adjusted EBITDA(1) | 26,479 | 13,053 | 9,714 | - | 49,246 | |||||||||||
Capital expenditures | 20,334 | 3,101 | 623 | 2,666 | 26,724 | |||||||||||
(1) The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Company’s reasons for using this non-GAAP financial measure. | ||||||||||||||||
Reconciliation Of Operating Income To Adjusted EBITDA | ' | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Operating income | $ | 10,248 | $ | 12,085 | $ | 21,006 | $ | 25,811 | ||||||||
Depreciation and amortization and accretion | ||||||||||||||||
of asset retirement obligations | 11,240 | 10,829 | 21,926 | 20,423 | ||||||||||||
Sub-total: | 21,488 | 22,914 | 42,932 | 46,234 | ||||||||||||
Amortization of actuarial losses | 64 | 309 | 128 | 619 | ||||||||||||
Equity-based compensation | 1,152 | 1,328 | 1,986 | 2,353 | ||||||||||||
Restructuring charges | - | - | - | 40 | ||||||||||||
Employee separation charges | 19 | - | 244 | - | ||||||||||||
Adjusted EBITDA | $ | 22,723 | $ | 24,551 | $ | 45,290 | $ | 49,246 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Long-Term Debt [Abstract] | ' | ||||||
Schedule Of Long-Term Debt | ' | ||||||
(In thousands) | 30-Jun-14 | 31-Dec-13 | |||||
Credit facility | $ | 372,250 | $ | 373,625 | |||
Capital lease obligations | 5,194 | 6,353 | |||||
Long-term debt | 377,444 | 379,978 | |||||
Less: current portion of long-term debt | 10,250 | 6,688 | |||||
Long-term debt, excluding current portion | $ | 367,194 | $ | 373,290 | |||
Supplementary_Disclosures_Of_C1
Supplementary Disclosures Of Cash Flow Information (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | ||||||
Supplementary Disclosures Of Consolidated Statements Of Cash Flows | ' | ||||||
Six Months Ended June 30, | |||||||
(In thousands) | 2014 | 2013 | |||||
Cash payments for: | |||||||
Interest (net of amounts capitalized) | $ | 6,198 | $ | 5,793 | |||
Income taxes | 141 | 933 | |||||
Cash receipts for: | |||||||
Income tax refunds | 216 | 16 | |||||
Supplemental investing and financing activities: | |||||||
Additions to property, plant and equipment included in accounts payable and other accrued liabilities | 1,795 | 4,989 | |||||
Obligations incurred under capital leases | 36 | 6,384 | |||||
Dividends declared on common stock not paid | 3,131 | 3,062 | |||||
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||||||
Summary Of Financial Assets And Liabilities Measured At Fair Value | ' | ||||||||||||
Fair Value Measurements at | |||||||||||||
30-Jun-14 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Financial Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 25 | $ | - | $ | - | $ | 25 | |||||
Total cash equivalents | 25 | - | - | 25 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | - | 1,315 | - | 1,315 | |||||||||
Commercial paper | - | 3,248 | - | 3,248 | |||||||||
Debt securities issued by U.S. Government agencies | - | 6,441 | - | 6,441 | |||||||||
Municipal bonds | - | 855 | - | 855 | |||||||||
Corporate debt securities | - | 24,737 | - | 24,737 | |||||||||
Total marketable securities | - | 36,596 | - | 36,596 | |||||||||
Total financial assets | $ | 25 | $ | 36,596 | $ | - | $ | 36,621 | |||||
Financial Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,064 | $ | - | $ | 1,064 | |||||
Total financial liabilities | $ | - | $ | 1,064 | $ | - | $ | 1,064 | |||||
Fair Value Measurements at | |||||||||||||
31-Dec-13 | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||
Financial Assets: | |||||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 267 | $ | - | $ | - | $ | 267 | |||||
Corporate debt securities | - | 1,106 | - | 1,106 | |||||||||
Total cash equivalents | 267 | 1,106 | - | 1,373 | |||||||||
Marketable securities: | |||||||||||||
Certificates of deposit | - | 2,000 | - | 2,000 | |||||||||
Commercial paper | - | 5,246 | - | 5,246 | |||||||||
Debt securities issued by U.S. Government agencies | - | 8,483 | - | 8,483 | |||||||||
Municipal bonds | - | 500 | - | 500 | |||||||||
Corporate debt securities | - | 22,251 | - | 22,251 | |||||||||
Total marketable securities | - | 38,480 | - | 38,480 | |||||||||
Total financial assets | $ | 267 | $ | 39,586 | $ | - | $ | 39,853 | |||||
Financial Liabilities: | |||||||||||||
Interest rate swap derivatives | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Total financial liabilities | $ | - | $ | 1,157 | $ | - | $ | 1,157 | |||||
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | ' | ||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||
(Level 2) | (Level 2) | ||||||||||||
Credit Facility | $ | 372,250 | $ | 378,717 | $ | 373,625 | $ | 366,955 | |||||
Capital lease obligations | 5,194 | 5,194 | 6,353 | 6,353 | |||||||||
Equity_Tables
Equity (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Summary Of Activity And Status Of Equity | ' | |||||||||||||||||||||||||||
(In thousands, except per share amounts) | Common Shares | Treasury Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated | Accumulated Other Comprehensive Loss, net of tax | Total Lumos Networks Corp. Stockholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Deficit | ||||||||||||||||||||||||||||
Balance, December 31, 2013 | 22,158 | 49 | $ | 222 | $ | 138,166 | $ | -404 | $ | -47,578 | $ | -4,073 | $ | 86,333 | $ | 673 | $ | 87,006 | ||||||||||
Net income attributable to | ||||||||||||||||||||||||||||
Lumos Networks Corp. | 7,908 | 7,908 | 7,908 | |||||||||||||||||||||||||
Other comprehensive income, | ||||||||||||||||||||||||||||
net of tax | 81 | 81 | 81 | |||||||||||||||||||||||||
Equity-based compensation expense | 1,532 | 1,532 | 1,532 | |||||||||||||||||||||||||
Excess tax benefits from share-based | ||||||||||||||||||||||||||||
compensation | 149 | 149 | 149 | |||||||||||||||||||||||||
Restricted shares issued, shares | ||||||||||||||||||||||||||||
issued through the employee | ||||||||||||||||||||||||||||
stock purchase plan and | ||||||||||||||||||||||||||||
401(k) matching contributions | ||||||||||||||||||||||||||||
(net of shares reacquired | ||||||||||||||||||||||||||||
through restricted stock forfeits) | 93 | -46 | 2 | 128 | 395 | 525 | 525 | |||||||||||||||||||||
Stock option exercises | 128 | 1,592 | 1,592 | 1,592 | ||||||||||||||||||||||||
Cash dividends declared ($0.28 | ||||||||||||||||||||||||||||
per share) | -6,235 | -6,235 | -6,235 | |||||||||||||||||||||||||
Net income attributable to | ||||||||||||||||||||||||||||
noncontrolling interests | - | 55 | 55 | |||||||||||||||||||||||||
Balance, June 30, 2014 | 22,379 | 3 | $ | 224 | $ | 141,567 | $ | -9 | $ | -45,905 | $ | -3,992 | $ | 91,885 | $ | 728 | $ | 92,613 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Share | ' | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||
Numerator: | |||||||||||||
Net income attributable to Lumos Networks Corp. | $ | 3,846 | $ | 4,762 | $ | 7,908 | $ | 11,171 | |||||
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -94 | -134 | -191 | -276 | |||||||||
Numerator for basic and diluted earnings per common share | 3,752 | 4,628 | 7,717 | 10,895 | |||||||||
Denominator: | |||||||||||||
Weighted average basic shares outstanding | 22,268 | 21,962 | 22,209 | 21,824 | |||||||||
Less: weighted average participating securities and nonvested performance-based restricted shares | -566 | -725 | -557 | -612 | |||||||||
Denominator for basic earnings per common share | 21,702 | 21,237 | 21,652 | 21,212 | |||||||||
Plus: potentially dilutive restricted shares and stock options | 412 | 229 | 360 | 125 | |||||||||
Denominator for diluted earnings per common share | 22,114 | 21,466 | 22,012 | 21,337 | |||||||||
Earnings per share - basic | $ | 0.17 | $ | 0.22 | $ | 0.36 | $ | 0.51 | |||||
Earnings per share - diluted | $ | 0.17 | $ | 0.22 | $ | 0.35 | $ | 0.51 | |||||
Stock_Plans_Tables
Stock Plans (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Stock Plans [Abstract] | ' | |||||||||
Summary Of Stock Options Activity | ' | |||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||
Stock options outstanding at December 31, 2013 | 2,266 | $ | 12.19 | |||||||
Granted during the period | 165 | 15.55 | ||||||||
Exercised during the period | -128 | 12.52 | ||||||||
Forfeited during the period | -7 | 11.80 | ||||||||
Expired during the period | - | - | ||||||||
Stock options outstanding at June 30, 2014 | 2,296 | $ | 12.41 | 7.3 years | $ | 5,850 | ||||
Stock options exercisable at June 30, 2014 | 1,283 | $ | 12.51 | 6.4 years | $ | 3,098 | ||||
Total stock options outstanding, vested and expected to vest at June 30, 2014 | 2,205 | $ | 12.44 | $ | 5,554 | |||||
Summary Of Restricted Stock Awards Activity | ' | |||||||||
(In thousands, except per share amounts) | Shares | Weighted-Average Grant Date Fair Value per Share | ||||||||
Restricted stock outstanding at December 31, 2013 | 560 | $ | 11.93 | |||||||
Granted during the period | 126 | 15.58 | ||||||||
Vested during the period | -79 | 11.75 | ||||||||
Forfeited during the period | -24 | 11.44 | ||||||||
Restricted stock outstanding at June 30, 2014 | 583 | $ | 12.77 | |||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | |
Broadband Services Project Due 2015 [Member] | Broadband Services Project Due 2015 [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Total project cost | ' | ' | ' | ' | ' | $16,100,000 | ' | ' |
Percentage funded by federal government grants | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Federal government grants | ' | ' | ' | ' | ' | 8,000,000 | ' | ' |
Percentage of deposits | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Portion of grants deposited into pledged account | ' | ' | ' | ' | ' | 8,000,000 | ' | ' |
Cash reimbursement received from broadband stimulus grant | 0 | ' | 0 | 979,000 | ' | ' | ' | ' |
Restricted cash reimbursement receivable | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Restricted cash | 4,324,000 | ' | 4,324,000 | ' | 4,324,000 | ' | ' | ' |
Bad debt expenses | 300,000 | 100,000 | 500,000 | 100,000 | ' | ' | ' | ' |
Accounts receivable, allowance | 1,369,000 | ' | 1,369,000 | ' | 1,485,000 | ' | ' | ' |
Pension benefit vesting period, years | ' | ' | '5 years | ' | ' | ' | ' | ' |
Capitalized costs incurred to renew or extend the term of a recognized intangible asset | ' | ' | 0 | ' | ' | ' | ' | ' |
Amortization expense | 2,300,000 | 2,500,000 | 4,594,000 | 4,912,000 | ' | ' | ' | ' |
Number of highest consecutive years of compensation subject to certain reductions | ' | ' | '5 years | ' | ' | ' | ' | ' |
Maximum retirement age reached to be subject to reductions, years | ' | ' | '65 years | ' | ' | ' | ' | ' |
Pension plan assets value | 59,100,000 | ' | 59,100,000 | ' | 57,800,000 | ' | ' | ' |
Funding contributions | ' | ' | 0 | ' | ' | ' | ' | ' |
Qualified Nonpension Postretirement Benefit Plans | 2 | ' | 2 | ' | ' | ' | ' | ' |
Nonqualified pension plans expense | 100,000 | 100,000 | 200,000 | 200,000 | ' | ' | ' | ' |
Amount of nonqualified pension plans expense related to amortization of actuarial loss | 100,000 | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' |
Amount reclassified out of AOCI related to amortization of actuarial losses | 64,000 | 309,000 | 128,000 | 619,000 | ' | ' | ' | ' |
Equity-based compensation expense | 1,152,000 | 1,328,000 | 1,986,000 | 2,353,000 | ' | ' | ' | ' |
Future charges for equity-based compensation, remainder of 2014 | 1,700,000 | ' | 1,700,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2015 | 2,800,000 | ' | 2,800,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2016 | 1,700,000 | ' | 1,700,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2017 | 800,000 | ' | 800,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2018 | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' |
Future charges for equity-based compensation, 2019 | ' | ' | ' | ' | ' | ' | ' | $100,000 |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Schedule Of Allowance For Doubtful Accounts) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Summary Of Significant Accounting Policies [Abstract] | ' |
Allowance for doubtful accounts, Balance at Beginning of Year | $1,485 |
Charged to Expense | 483 |
Charged to Other Accounts | 33 |
Deductions | -632 |
Allowance for doubtful accounts, Balance at End of Period | $1,369 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Customer Relationships [Member] | Customer Relationships [Member] | Trademarks And Franchise Rights [Member] | Trademarks And Franchise Rights [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Customer Relationships [Member] | Trademarks And Franchise Rights [Member] | Customer Relationships [Member] | Trademarks And Franchise Rights [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated life | ' | ' | ' | ' | ' | ' | '5 years | '10 years | '15 years | '15 years |
Gross amount | $105,970 | $106,671 | $103,108 | $103,153 | $2,862 | $3,518 | ' | ' | ' | ' |
Accumulated Amortization | ($85,493) | ($81,600) | ($83,895) | ($79,399) | ($1,598) | ($2,201) | ' | ' | ' | ' |
Summary_Of_Significant_Account6
Summary Of Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
Remainder of 2014 | $4,593 |
2015 | 4,807 |
2016 | 2,575 |
2017 | 2,256 |
2018 | 1,944 |
2019 | 1,665 |
Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Remainder of 2014 | 4,512 |
2015 | 4,644 |
2016 | 2,412 |
2017 | 2,093 |
2018 | 1,781 |
2019 | 1,513 |
Trademarks And Franchise Rights [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Remainder of 2014 | 81 |
2015 | 163 |
2016 | 163 |
2017 | 163 |
2018 | 163 |
2019 | $152 |
Summary_Of_Significant_Account7
Summary Of Significant Accounting Policies (Schedule Of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Pension Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | ' | ' | ' | ' |
Interest cost | 656 | 608 | 1,312 | 1,216 |
Expected return on plan assets | -1,093 | -975 | -2,186 | -1,951 |
Amortization of loss | ' | 229 | ' | 459 |
Net periodic benefit cost (income) | -437 | -138 | -874 | -276 |
Other Postretirement Benefit Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 13 | 23 | 26 | 46 |
Interest cost | 147 | 121 | 294 | 242 |
Amortization of loss | 8 | 7 | 16 | 14 |
Net periodic benefit cost (income) | $168 | $151 | $336 | $302 |
Cash_Equivalents_And_Marketabl2
Cash Equivalents And Marketable Securities (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Total proceeds from the sale or maturity of available-for-sale marketable securities | $6,400,000 | $14,174,000 |
Net realized gains or losses on available-for-sale securities | 0 | 0 |
Maximum [Member] | ' | ' |
Net unrealized holding gains on available-for-sale securities | $100,000 | $100,000 |
Cash_Equivalents_And_Marketabl3
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | $25 | $1,373 |
Total marketable securities, available-for-sale | 36,596 | 38,480 |
Total cash equivalents and marketable securities | 36,621 | 39,853 |
Money Market Mutual Funds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | 25 | 267 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total cash equivalents | ' | 1,106 |
Certificates of Deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 1,315 | 2,000 |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 3,248 | 5,246 |
Debt Securities Issued By U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 6,441 | 8,483 |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | 855 | 500 |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total marketable securities, available-for-sale | $24,737 | $22,251 |
Cash_Equivalents_And_Marketabl4
Cash Equivalents And Marketable Securities (Schedule Of Contractual Maturities Of Available-For-Sale Debt Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash Equivalents And Marketable Securities [Abstract] | ' | ' |
Due in one year or less | $22,555 | ' |
Due after one year through two years | 14,041 | ' |
Total debt securities | $36,596 | $38,480 |
Disclosures_About_Segments_Of_2
Disclosures About Segments Of An Enterprise And Related Information (Narrative) (Details) | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
customer | segment | Customer One [Member] | Customer One [Member] | Customer One [Member] | Customer One [Member] | Customer Two [Member] | Customer Two [Member] | Customer Two [Member] | Customer Two [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable operating segments | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers that individually accounted for approximately 10% of total revenues | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage to total revenue | ' | ' | 10.00% | 7.00% | 9.00% | 10.00% | 10.00% | 7.00% | 9.00% | 10.00% |
Disclosures_About_Segments_Of_3
Disclosures About Segments Of An Enterprise And Related Information (Summarized Financial Information Of Reportable Segments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | $50,165 | $52,311 | $100,255 | $104,845 | ||||
Network access costs | 10,190 | 10,501 | 20,904 | 21,655 | ||||
Network operating costs | 10,430 | 10,680 | 20,793 | 20,721 | ||||
Other general and administrative expenses | 8,057 | 8,216 | 15,626 | 16,195 | ||||
Adjusted EBITDA | 22,723 | [1] | 24,551 | [1] | 45,290 | [1] | 49,246 | [1] |
Capital expenditures | 19,171 | 11,692 | 37,288 | 26,724 | ||||
Data [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 26,707 | 25,706 | 52,844 | 51,075 | ||||
Network access costs | 3,919 | 3,879 | 8,093 | 7,910 | ||||
Network operating costs | 5,761 | 5,239 | 11,683 | 10,245 | ||||
Other general and administrative expenses | 3,632 | 3,233 | 6,956 | 6,441 | ||||
Adjusted EBITDA | 13,395 | [1] | 13,355 | [1] | 26,112 | [1] | 26,479 | [1] |
Capital expenditures | 13,457 | 9,998 | 24,794 | 20,334 | ||||
R&SB [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 18,290 | 20,453 | 36,937 | 41,510 | ||||
Network access costs | 6,271 | 6,622 | 12,811 | 13,745 | ||||
Network operating costs | 4,302 | 4,903 | 8,417 | 9,477 | ||||
Other general and administrative expenses | 2,487 | 2,572 | 4,935 | 5,235 | ||||
Adjusted EBITDA | 5,230 | [1] | 6,356 | [1] | 10,774 | [1] | 13,053 | [1] |
Capital expenditures | 2,599 | 1,536 | 4,987 | 3,101 | ||||
RLEC Access [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | 5,168 | 6,152 | 10,474 | 12,260 | ||||
Network operating costs | 367 | 538 | 693 | 999 | ||||
Other general and administrative expenses | 703 | 774 | 1,377 | 1,547 | ||||
Adjusted EBITDA | 4,098 | [1] | 4,840 | [1] | 8,404 | [1] | 9,714 | [1] |
Capital expenditures | ' | 454 | ' | 623 | ||||
Corporate (Unallocated) [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Other general and administrative expenses | 1,235 | 1,637 | 2,358 | 2,972 | ||||
Capital expenditures | $3,115 | ($296) | $7,507 | $2,666 | ||||
[1] | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 2. Managementbs Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Companybs reasons for using this non-GAAP financial measure. |
Disclosures_About_Segments_Of_4
Disclosures About Segments Of An Enterprise And Related Information (Reconciliation Of Operating Income To Adjusted EBITDA) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ' | ' | ' | ' | ||||
Operating Income | $10,248 | $12,085 | $21,006 | $25,811 | ||||
Depreciation and amortization and accretion of asset retirement obligations | 11,240 | 10,829 | 21,926 | 20,423 | ||||
Sub-total | 21,488 | 22,914 | 42,932 | 46,234 | ||||
Amortization of actuarial losses | 64 | 309 | 128 | 619 | ||||
Equity-based compensation | 1,152 | 1,328 | 1,986 | 2,353 | ||||
Restructuring charges | ' | ' | ' | 40 | ||||
Employee separation charges | 19 | ' | 244 | ' | ||||
Adjusted EBITDA | $22,723 | [1] | $24,551 | [1] | $45,290 | [1] | $49,246 | [1] |
[1] | The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP measure), defined by the Company as net income or loss attributable to Lumos Networks Corp. before interest, income taxes, depreciation and amortization, accretion of asset retirement obligations, net income or loss attributable to noncontrolling interests, other income or expenses, equity-based compensation charges, acquisition-related charges, amortization of actuarial losses on retirement plans, employee separation charges, restructuring-related charges, gain or loss on settlements and gain or loss on interest rate swap derivatives. See Item 2. Managementbs Discussion and Analysis of Financial Condition and Results of Operations for additional disclosures, including the Companybs reasons for using this non-GAAP financial measure. |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||||||||
Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
item | item | January 1, 2014 Through December 31, 2014 [Member] | January 1, 2015 Through December 31, 2015 [Member] | After December 31, 2015 [Member] | Vehicles [Member] | Software Licenses [Member] | Senior Secured Five Year Amortizing Term Loan [Member] | Senior Secured Six Year Amortizing Term Loan [Member] | Senior Secured Revolving Credit Facility [Member] | Revolver [Member] | Term Loan A [Member] | Term Loan A [Member] | Term Loan A [Member] | Term Loan B [Member] | Term Loan B [Member] | Term Loan A And B [Member] | Term Loan A And B [Member] | Minimum [Member] | Maximum [Member] | ||||||
item | item | item | September 30, 2014 Through December 31, 2016 [Member] | After December 31, 2016 [Member] | Beginning On September 30, 2013 [Member] | ||||||||||||||||||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit borrowing capacity | $425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 275,000,000 | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '6 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding retired | 311,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding, credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.25% | ' | ' | 3.50% | ' | ' | ' | ' | ' |
Quarterly payments per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 2.50% | ' | 1.00% | ' | ' | ' | ' |
Line of credit, leverage ratio, maximum | ' | ' | ' | ' | ' | ' | ' | 4.5 | 4.25 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest coverage ratio, minimum | ' | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage and interest coverage ratio | ' | ' | ' | 'leverage ratio was 4.09:1.00 and its interest coverage ratio was 6.64:1.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage and interest coverage ratio requirements | ' | ' | ' | 'maximum leverage ratio of 4.50:1.00 for 2014, 4.25:1.00 for 2015 and 4.00:1.00 thereafter. The Credit Facility also sets a minimum interest rate coverage ratio of 3.25:1.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, leverage ratio | ' | 4.09 | ' | 4.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest coverage ratio | ' | 6.64 | ' | 6.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, initial distributable amount | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount, increase each year | ' | 12,000,000 | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount, increase each year, free cash flow | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, distributable amount | ' | 11,700,000 | ' | 11,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate | ' | ' | ' | ' | ' | 0.80% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined notional amount of swap agreements percentage of aggregate outstanding balance of term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Notional amount remaining | ' | 186,100,000 | ' | 186,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on interest rate swap derivatives | ' | 100,000 | 300,000 | 100,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unamortized debt issuance costs | ' | 5,900,000 | ' | 5,900,000 | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt issuance costs | ' | 400,000 | 300,000 | 700,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patronage credits | ' | 200,000 | 300,000 | 300,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of long-term debt, remainder of 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | ' | ' |
Maturities of long-term debt, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' |
Maturities of long-term debt, 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' |
Maturities of long-term debt, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,800,000 | ' | ' |
Maturities of long-term debt, 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,200,000 | ' | ' |
Maturities of long-term debt, thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 259,900,000 | ' | ' |
Blended average interest rate | ' | 4.22% | ' | 4.22% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years |
Capital leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments | ' | 5,200,000 | ' | 5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, remainder of 2014 | ' | 300,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2015 | ' | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2016 | ' | 2,300,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, 2017 | ' | 100,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, thereafter | ' | $100,000 | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_Of_Long
Long-Term Debt (Schedule Of Long-Term Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ' | ' |
Credit facility | $372,250 | $373,625 |
Capital lease obligations | 5,194 | 6,353 |
Long-term debt | 377,444 | 379,978 |
Less: current portion of long term debt | 10,250 | 6,688 |
Long-term debt, excluding current portion | $367,194 | $373,290 |
Supplementary_Disclosures_Of_C2
Supplementary Disclosures Of Cash Flow Information (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | ' | ' |
Interest (net of amounts capitalized) | $6,198,000 | $5,793,000 |
Income taxes | 141,000 | 933,000 |
Income tax refunds | 216,000 | 16,000 |
Additions to property and equipment included in accounts payable and other accrued liabilities | 1,795,000 | 4,989,000 |
Obligations incurred under capital leases | 36,000 | 6,384,000 |
Dividends declared on common stock not paid | 3,131,000 | 3,062,000 |
Cash received from patronage credits | 900,000 | 700,000 |
Interest capitalized | $200,000 | $100,000 |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments for which it is not practicable to estimate fair value | $0.80 | $0.70 |
CoBank [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term investments for which it is not practicable to estimate fair value | $0.70 | $0.60 |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments (Summary Of Financial Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | $25 | $1,373 |
Total marketable securities | 36,596 | 38,480 |
Total financial assets | 36,621 | 39,853 |
Total financial liabilities | 1,064 | 1,157 |
Interest Rate Swap Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial liabilities | 1,064 | 1,157 |
Money Market Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | 25 | 267 |
Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 1,315 | 2,000 |
Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 3,248 | 5,246 |
Debt Securities Issued By U.S. Government Agencies [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 6,441 | 8,483 |
Municipal Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 855 | 500 |
Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | ' | 1,106 |
Total marketable securities | 24,737 | 22,251 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | 25 | 267 |
Total financial assets | 25 | 267 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | 25 | 267 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | ' | 1,106 |
Total marketable securities | 36,596 | 38,480 |
Total financial assets | 36,596 | 39,586 |
Total financial liabilities | 1,064 | 1,157 |
Level 2 [Member] | Interest Rate Swap Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial liabilities | 1,064 | 1,157 |
Level 2 [Member] | Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 1,315 | 2,000 |
Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 3,248 | 5,246 |
Level 2 [Member] | Debt Securities Issued By U.S. Government Agencies [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 6,441 | 8,483 |
Level 2 [Member] | Municipal Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | 855 | 500 |
Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | ' | 1,106 |
Total marketable securities | 24,737 | 22,251 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | ' | ' |
Total marketable securities | ' | ' |
Total financial assets | ' | ' |
Total financial liabilities | ' | ' |
Level 3 [Member] | Interest Rate Swap Derivatives [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial liabilities | ' | ' |
Level 3 [Member] | Money Market Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total cash equivalents | ' | ' |
Level 3 [Member] | Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | ' | ' |
Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | ' | ' |
Level 3 [Member] | Debt Securities Issued By U.S. Government Agencies [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | ' | ' |
Level 3 [Member] | Municipal Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | ' | ' |
Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total marketable securities | ' | ' |
Fair_Value_Of_Financial_Instru4
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Capital lease obligations | $5,194 | $6,353 |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Credit Facility | 372,250 | 373,625 |
Capital lease obligations | 5,194 | 6,353 |
Fair Value (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Credit Facility | 378,717 | 366,955 |
Capital lease obligations | $5,194 | $6,353 |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 29, 2014 | |
Subsequent Event [Member] | |||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Cash dividend declaration, date | ' | ' | 29-Jul-14 | ' | ' |
Cash dividends declared, per share | $0.14 | $0.14 | $0.28 | $0.28 | $0.14 |
Dividend payable to stockholders, date | ' | ' | 9-Oct-14 | ' | ' |
Dividend recorded, date | ' | ' | 11-Sep-14 | ' | ' |
Equity_Summary_Of_Activity_And
Equity (Summary Of Activity And Status Of Equity) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | $87,006 | ' |
Net income attributable to Lumos Networks Corp. | 3,846 | 4,762 | 7,908 | 11,171 |
Other comprehensive income, net of tax | 27 | 189 | 81 | 378 |
Equity-based compensation expense | ' | ' | 1,532 | ' |
Excess tax benefits from share-based compensation | ' | ' | 149 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | ' | ' | 525 | ' |
Stock options exercises, shares | ' | ' | 128 | ' |
Stock option exercises | ' | ' | 1,592 | ' |
Cash dividends declared ($0.28 per share) | ' | ' | -6,235 | ' |
Net income attributable to noncontrolling interests | ' | ' | 55 | ' |
Balance | 92,613 | ' | 92,613 | ' |
Cash dividends declared, per share | $0.14 | $0.14 | $0.28 | $0.28 |
Common Stock [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | 222 | ' |
Balance, December 31, 2013, shares | ' | ' | 22,158 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | ' | ' | 2 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits), shares | ' | ' | 93 | ' |
Stock options exercises, shares | ' | ' | 128 | ' |
Balance | 224 | ' | 224 | ' |
Balance, June 30, 2014, shares | 22,379 | ' | 22,379 | ' |
Treasury Stock [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | -404 | ' |
Balance, December 31, 2013, shares | ' | ' | 49 | ' |
Net income attributable to Lumos Networks Corp. | ' | ' | ' | ' |
Other comprehensive income, net of tax | ' | ' | ' | ' |
Equity-based compensation expense | ' | ' | ' | ' |
Excess tax benefits from share-based compensation | ' | ' | ' | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | ' | ' | 395 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits), shares | ' | ' | -46 | ' |
Stock option exercises | ' | ' | ' | ' |
Cash dividends declared ($0.28 per share) | ' | ' | ' | ' |
Net income attributable to noncontrolling interests | ' | ' | ' | ' |
Balance | -9 | ' | -9 | ' |
Balance, June 30, 2014, shares | 3 | ' | 3 | ' |
Additional Paid-In Capital [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | 138,166 | ' |
Equity-based compensation expense | ' | ' | 1,532 | ' |
Excess tax benefits from share-based compensation | ' | ' | 149 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | ' | ' | 128 | ' |
Stock option exercises | ' | ' | 1,592 | ' |
Balance | 141,567 | ' | 141,567 | ' |
Accumulated Deficit [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | -47,578 | ' |
Net income attributable to Lumos Networks Corp. | ' | ' | 7,908 | ' |
Cash dividends declared ($0.28 per share) | ' | ' | -6,235 | ' |
Balance | -45,905 | ' | -45,905 | ' |
Accumulated Other Comprehensive Loss, Net Of Tax [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | -4,073 | ' |
Other comprehensive income, net of tax | ' | ' | 81 | ' |
Balance | -3,992 | ' | -3,992 | ' |
Total Lumos Networks Corp. Stockholders' Equity [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | 86,333 | ' |
Net income attributable to Lumos Networks Corp. | ' | ' | 7,908 | ' |
Other comprehensive income, net of tax | ' | ' | 81 | ' |
Equity-based compensation expense | ' | ' | 1,532 | ' |
Excess tax benefits from share-based compensation | ' | ' | 149 | ' |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | ' | ' | 525 | ' |
Stock option exercises | ' | ' | 1,592 | ' |
Cash dividends declared ($0.28 per share) | ' | ' | -6,235 | ' |
Balance | 91,885 | ' | 91,885 | ' |
Noncontrolling Interests [Member] | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' |
Balance | ' | ' | 673 | ' |
Net income attributable to noncontrolling interests | ' | ' | 55 | ' |
Balance | $728 | ' | $728 | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Stock Options And Nonvested Restricted Stock [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options And Nonvested Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Excluded from computation of diluted earnings per common share | 1,150,712 | 578,868 | 508,403 | 1,687,938 |
Earnings_Per_Share_Schedule_Of
Earnings Per Share (Schedule Of Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income attributable to Lumos Networks Corp. | $3,846 | $4,762 | $7,908 | $11,171 |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | -94 | -134 | -191 | -276 |
Numerator for basic and diluted earnings per common share | $3,752 | $4,628 | $7,717 | $10,895 |
Weighted average basic shares outstanding | 22,268 | 21,962 | 22,209 | 21,824 |
Less: weighted average participating securities and nonvested performance-based restricted shares | -566 | -725 | -557 | -612 |
Denominator for basic earnings per common share | 21,702 | 21,237 | 21,652 | 21,212 |
Plus: potentially dilutive restricted shares and stock options | 412 | 229 | 360 | 125 |
Denominator for diluted earnings per common share | 22,114 | 21,466 | 22,012 | 21,337 |
Earnings per share - basic | $0.17 | $0.22 | $0.36 | $0.51 |
Earnings per share - diluted | $0.17 | $0.22 | $0.35 | $0.51 |
Stock_Plans_Narrative_Details
Stock Plans (Narrative) (Details) (USD $) | 6 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of stock options issued | 165,149 |
Number of shares issued during the period | 126,340 |
Stock plan vesting description | 'Options generally cliff vest on the first anniversary of the grant date for non-employee directors. Restricted shares generally cliff vest on the third anniversary of the grant date for employees and generally cliff vest on the first anniversary of the grant date for non-employee directors. Some of the outstanding restricted stock awards vest on a graded vesting schedule over a five year period. |
Vesting schedule | '5 years |
Stock options to be granted, minimum percentage | 100.00% |
Stock options grants, maximum life, in years | '10 years |
Weighted-average grant date fair value per share of stock options granted | $6.76 |
Total fair value of options vested | $0.40 |
Unrecognized compensation cost | 2.4 |
Unrecognized compensation cost recognition period, in years | '3 years 2 months 12 days |
Shares available for employee stock purchase plan | 100,000 |
Shares price percentage | 85.00% |
Shares issued under the employee stock purchase plan | 2,796 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | $4.50 |
Unrecognized compensation cost recognition period, in years | '2 years 3 months 18 days |
Equity And Cash Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,500,000 |
Maximum number of shares of common stock available for awards | 5,500,000 |
Securities remained available for issuance | 1,595,512 |
Stock plan vesting description | 'Options issued to employees with service-only conditions generally vest on a graded vesting schedule over a four to five year period. Options generally cliff vest on the first anniversary of the grant date for non-employee directors. |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period for options issued to employees with service-only conditions | '4 years |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period for options issued to employees with service-only conditions | '5 years |
Stock_Plans_Summary_Of_Stock_O
Stock Plans (Summary Of Stock Options Activity) (Details) (USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Stock Plans [Abstract] | ' |
Stock options outstanding at December 31, 2013, Shares | 2,266,000 |
Stock options outstanding at December 31, 2013, Weighted-Average Exercise Price per Share | $12.19 |
Granted during the period, Shares | 165,149 |
Granted during the period, Weighted-Average Exercise Price per Share | $15.55 |
Exercised during the period, Shares | -128,000 |
Exercised during the period, Weighted-Average Exercise Price per Share | $12.52 |
Forfeited during the period, Shares | -7,000 |
Forfeited during the period, Weighted-Average Exercise Price per Share | $11.80 |
Stock options outstanding at June 30, 2014, Shares | 2,296,000 |
Stock options outstanding at June 30, 2014, Weighted-Average Exercise Price per Share | $12.41 |
Stock options outstanding, Weighted-Average Remaining Contractual Term, in years | '7 years 3 months 18 days |
Stock options outstanding, Aggregate Intrinsic Value | $5,850 |
Stock options exercisable at June 30, 2014, Shares | 1,283,000 |
Stock options exercisable at June 30, 2014, Weighted-Average Exercise Price per Share | $12.51 |
Stock options exercisable at June 30, 2014, Weighted-Average Remaining Contractual Term, in years | '6 years 4 months 24 days |
Stock options exercisable at June 30, 2014, Aggregate Intrinsic Value | 3,098 |
Total stock options outstanding, vested and expected to vest at June 30, 2014, Shares | 2,205,000 |
Total stock options outstanding, vested and expected to vest at June 30, 2014, Weighted-Average Exercise Price per Share | $12.44 |
Total stock options outstanding, vested and expected to vest at June 30, 2014, Aggregate Intrinsic Value | $5,554 |
Stock_Plans_Summary_Of_Restric
Stock Plans (Summary Of Restricted Stock Awards Activity) (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Plans [Abstract] | ' |
Restricted stock outstanding at December 31, 2013, Shares | 560,000 |
Restricted stock outstanding at December 31, 2013, Weighted Average Grant Date Fair Value per Share | $11.93 |
Granted during the period, Shares | 126,340 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $15.58 |
Vested during the period, Shares | -79,000 |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $11.75 |
Forfeited during the period, Shares | -24,000 |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $11.44 |
Restricted stock outstanding at June 30, 2014, Shares | 583,000 |
Restricted stock outstanding at June 30, 2014, Weighted Average Grant Date Fair Value per Share | $12.77 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax [Line Items] | ' | ' | ' | ' |
Income tax expense | $2,711,000 | $3,241,000 | $5,689,000 | $7,573,000 |
Federal [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating losses | 11,800,000 | ' | 11,800,000 | ' |
State [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
Net operating losses | $15,000,000 | ' | $15,000,000 | ' |
Minimum [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
NOL expiration range | ' | ' | '2022 | ' |
Maximum [Member] | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' |
NOL expiration range | ' | ' | '2034 | ' |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies [Abstract] | ' |
Purchase commitments relating to capital expenditures | $10.70 |