Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Lumos Networks Corp. | |
Entity Central Index Key | 1,520,744 | |
Trading Symbol | LMOS | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,283,398 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 37,645 | $ 13,267 |
Marketable securities | 52,379 | 88,811 |
Accounts receivable, net of allowance of $1,111 ($1,235 in 2015) | 22,369 | 20,796 |
Other receivables | 215 | 852 |
Income tax receivable | 473 | 568 |
Prepaid expenses and other | 5,526 | 7,215 |
Total Current Assets | 118,607 | 131,509 |
Securities and Investments | 1,245 | 1,180 |
Property, Plant and Equipment | ||
Land and buildings | 23,233 | 23,019 |
Network plant and equipment | 655,383 | 624,360 |
Furniture, fixtures and other equipment | 48,874 | 48,266 |
Total in service | 727,490 | 695,645 |
Under construction | 49,065 | 51,663 |
Property, plant and equipment, gross | 776,555 | 747,308 |
Less accumulated depreciation and amortization | 259,381 | 248,364 |
Total Property, Plant and Equipment, net | 517,174 | 498,944 |
Other Assets | ||
Goodwill | 100,297 | 100,297 |
Other intangibles, less accumulated amortization of $95,536 ($94,892 in 2015) | 10,434 | 11,078 |
Deferred charges and other assets | 7,357 | 2,364 |
Total Other Assets | 118,088 | 113,739 |
Total Assets | 755,114 | 745,372 |
Current Liabilities | ||
Current portion of long-term debt | 13,992 | 10,400 |
Accounts payable | 13,157 | 14,182 |
Advance billings and customer deposits | 14,156 | 13,849 |
Accrued compensation | 2,559 | 1,191 |
Accrued operating taxes | 4,054 | 3,907 |
Other accrued liabilities | 5,144 | 4,974 |
Total Current Liabilities | 53,062 | 48,503 |
Long-term Liabilities | ||
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 461,628 | 456,300 |
Retirement benefits | 16,785 | 17,029 |
Deferred income taxes, net | 88,361 | 89,193 |
Other long-term liabilities | 2,063 | 2,016 |
Total Long-term Liabilities | $ 568,837 | $ 564,538 |
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; 23,484 shares issued and 23,267 shares outstanding (23,005 shares issued and 22,992 shares outstanding in 2015) | $ 235 | $ 230 |
Additional paid-in capital | 177,630 | 171,746 |
Treasury stock, 217 shares at cost (13 shares in 2015) | (2,500) | (103) |
Accumulated deficit | (31,435) | (28,541) |
Accumulated other comprehensive loss, net of tax | (11,709) | (11,940) |
Total Lumos Networks Corp. Stockholders' Equity | 132,221 | 131,392 |
Noncontrolling Interests | 994 | 939 |
Total Equity | 133,215 | 132,331 |
Total Liabilities and Equity | $ 755,114 | $ 745,372 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance | $ 1,111 | $ 1,235 |
Other intangibles, accumulated amortization | $ 95,536 | $ 94,892 |
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 | 23,484,000 | 23,005,000 |
Common stock, shares outstanding | 23,267,000 | 22,992,000 |
Treasury stock, shares | 217,000 | 13,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements Of Income [Abstract] | ||
Operating Revenues | $ 50,794 | $ 50,495 |
Operating Expenses | ||
Cost of Revenue, exclusive of depreciation and amortization shown separately below | 10,212 | 10,453 |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 23,335 | 19,093 |
Depreciation and amortization | 11,891 | 11,868 |
Accretion of asset retirement obligations | 34 | 34 |
Restructuring charges | 2,207 | 633 |
Total Operating Expenses | 47,679 | 42,081 |
Operating Income | 3,115 | 8,414 |
Other Income (Expenses) | ||
Interest expense | (6,989) | (3,486) |
Gain on interest rate swap derivatives | 82 | |
Other income (expenses), net | 174 | (243) |
Total Other Expenses, net | (6,815) | (3,647) |
(Loss) Income Before Income Taxes | (3,700) | 4,767 |
Income Tax (Benefit) Expense | (861) | 2,009 |
Net (Loss) Income | (2,839) | 2,758 |
Net Income Attributable to Noncontrolling Interests | (55) | (34) |
Net (Loss) Income Attributable to Lumos Networks Corp. | $ (2,894) | $ 2,724 |
Basic and Diluted (Loss) Earnings per Common Share Attributable to Lumos Networks Corp. Stockholders | ||
Basic and diluted (loss) earnings per share | $ (0.13) | $ 0.12 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net (Loss) Income | $ (2,839) | $ 2,758 |
Other Comprehensive Income, Net of Tax: | ||
Reclassification adjustment for amortization of actuarial loss from defined benefit plans included in net income (loss) (see Note 2) | 338 | 337 |
Unrealized holding gain on available-for-sale marketable securities | 41 | 11 |
Income Taxes | (148) | (135) |
Other Comprehensive Income, Net of Tax | 231 | 213 |
Total Comprehensive (Loss) Income | (2,608) | 2,971 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | (55) | (34) |
Comprehensive (Loss) Income Attributable to Lumos Networks Corp. | $ (2,663) | $ 2,937 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net (Loss) Income | $ (2,839) | $ 2,758 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 11,247 | 9,722 |
Amortization | 644 | 2,146 |
Accretion of asset retirement obligations | 34 | 34 |
Deferred income taxes | (982) | 1,916 |
Gain on interest rate swap derivatives | (82) | |
Equity-based compensation expense | 5,813 | 1,225 |
Amortization of debt discounts and issuance costs | 1,099 | 413 |
Retirement benefits, net of cash contributions and distributions | 94 | (108) |
Other | 509 | 158 |
Changes in assets and liabilities from operations: | ||
(Increase) decrease in accounts receivable | (1,656) | 270 |
(Increase) decrease in other assets | (3,595) | 21 |
Changes in income taxes | 2 | (66) |
Decrease in accounts payable | (2) | (2,504) |
Increase in other current liabilities | 2,010 | 1,197 |
Net Cash Provided by Operating Activities | 12,378 | 17,100 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (22,006) | (29,224) |
Broadband network expansion funded by stimulus grant | (649) | |
Purchases of available-for-sale marketable securities | (6,732) | (22,853) |
Proceeds from sale or maturity of available-for-sale marketable securities | 43,125 | 10,220 |
Change in restricted cash | 1,054 | |
Cash reimbursement received from broadband stimulus grant | 1,054 | |
Net Cash Provided by (Used in) Investing Activities | 14,387 | (40,398) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of senior secured term loan | 28,000 | |
Payment of financing costs | (861) | |
Principal payments on senior secured term loans | (1,938) | |
Cash dividends paid on common stock | (3,152) | |
Principal payments under capital lease obligations | (107) | (98) |
Proceeds from stock option exercises and employee stock purchase plan | 28 | 17 |
Common stock repurchased to settle tax withholding obligations on employee stock | 2,308 | 176 |
Other | 20 | |
Net Cash (Used in) Provided by Financing Activities | (2,387) | 21,812 |
Increase (decrease) in cash and cash equivalents | 24,378 | (1,486) |
Cash and Cash Equivalents: | ||
Beginning of Period | 13,267 | 14,140 |
End of Period | $ 37,645 | $ 12,654 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
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 Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 opinion of management, the accompanying unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 contain all adjustments necessary to present fairly in all material respects the Company’s financial position 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 months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2015 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, 2015 . Certain presentation changes have been made within the operating expense line items on the condensed consolidated statements of operations and prior period amounts have been reclassified in order to conform to the current year presentation. Specifically, the previously reported line item “network access costs” has been removed and the new line item “cost of revenue” has been added along with the necessary operating expense reclassifications. These reclassifications were not the result of an error and have no effect on previously reported operating income, net income or earnings per share. Accounting Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 condensed 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 and customer credits, deferred tax assets, marketable securities, asset retirement obligations, stock warrants and equity-based compensation, goodwill impairment assessments and reserves for employee benefit obligations and income tax uncertainties. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. 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 to other carriers. Revenues for equipment sales are recognized at the point of sale. 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’s marketable securities at March 31, 2016 and December 31, 2015 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with 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 March 31, 2016 and December 31, 2015 . 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 estimates 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 in the condensed consolidated statements of operations. Bad debt expense for each of the three months ended March 31, 2016 and 2015 was $0. 1 million . The Company’s allowance for doubtful accounts and customer credits was $ 1. 1 million and $1.2 million as of March 31, 2016 and December 31, 2015 . The following table presents a roll-forward of the Company’s allowance for doubtful accounts and customer credits from December 31, 2015 to March 31, 2016 : Additions (In thousands) December 31, 2015 Charged to Expense Charged to Other Accounts Deductions March 31, 2016 Allowance for doubtful accounts and customer credits $ 1,235 $ 134 $ (193) $ (65) $ 1,111 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 March 31, 2016 that would require the Company 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 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 and an indefeasible right of use agreement, is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the condensed consolidated balance sheets. At March 31, 2016 and December 31, 2015 , other intangibles were comprised of the following: March 31, 2016 December 31, 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,654) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,882) 2,862 (1,841) Total $ 105,970 $ (95,536) $ 105,970 $ (94,892) 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 months ended March 31, 2016 . Amortization expense for the three months ended March 31, 2016 and 2015 was $ 0.6 million and $ 2.1 million, respectively. Amortization expense for the remainder of 2016 and for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2016 $ 1,809 $ 122 $ 1,931 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 1 1,113 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 intangible 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 it to evaluate the carrying amount of goodwill or indefinite-lived intangible assets during the three months ended March 31, 2016 . 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. 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 months ended March 31, 2016 and 2015 , the components of the Company’s net periodic benefit cost (income) for the Pension Plan were as follows: Three Months Ended March 31, (In thousands) 2016 2015 Service cost $ - $ - Interest cost 674 666 Expected return on plan assets (884) (1,028) Amortization of loss 262 248 Net periodic benefit cost (income) $ 52 $ (114) Pension Plan assets were valued at $ 53.4 million and $ 5 3.9 million at March 31, 2016 and December 31, 2015 , respectively. No funding contributions were made during the three months ended March 31, 2016 , and the Company does not expect to make a funding contribution during the remainder of 2016. The Company also provides life insurance benefits for retired employees that meet eligibility requirements through two postretirement welfare benefit plans (the “Other Postretirement Benefit Plans”). The Company had provided retiree medical benefits under these plans until those benefits were terminated effective December 31, 2014 . The Company did not incur any significant costs associated with these plans during the three months ended March 31, 2016 or 2015. The Company recognized expense for certain nonqualified pension plans for each of the three months ended March 31, 2016 and 2015 of $0.1 million , and less than $0.1 million of this expense for each of these periods relates to the amortization of actuarial loss. The gross amount reclassified out of accumulated other comprehensive loss related to amortization of actuarial losses for retirement plans for each of the three months ended March 31, 2016 and 2015 was $ 0. 3 million, all of which has been reclassified to selling, general and administrative on the condensed consolidated statements of operations. Income taxes associated with these reclassifications were $0.1 million for each of the three months ended March 31, 2016 and 2015. 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. 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, annual employee bonuses paid in the form of immediately vested shares and the Company’s 401(k) matching contributions was $ 5.5 million and $ 1.2 million for the three months ended March 31, 2016 and 2015 , respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of operations. Future charges for equity-based compensation related to instruments outstanding at March 31, 2016 are estimated to be $ 3 .3 million for the remainder of 2016, $ 3.2 million in 2017, $ 1.2 million in 2018, $ 0.1 million in 2019, and less than $ 0.1 million thereafter. 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. 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 May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015-14”), which defers the effective date of ASU 2014-09 for public business entities from annual reporting periods beginning after December 15, 2016, to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016. ASU 2014-09 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. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. The Company does not expect the future adoption of ASU 2015-02 to have a material impact on the its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will replace most existing lease guidance in U.S. GAAP when it becomes effective. ASU 2016-02 requires an entity to recognize most leases, including operating leases, on the consolidated balance sheet of the lessee. ASU 2016-02 is effective for public business entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 requires the use of a modified retrospective transition method with elective reliefs. The Company is still evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and disclosures . In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplifies the accounting for share-based payment transactions. Among other things, ASU 2016-09 provides for (i) the simplification of accounting presentation of excess tax benefits and tax deficiencies, (ii) an accounting policy election regarding forfeitures to use an estimate or account for when incurred, and (iii) simplification of cash flow presentation for statutory tax rate withholding. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The transition method required by ASU 2016-09 varies by amendment. The Company is still evaluating the effect that ASU 2016-09 will have on its consolidated financial statements and disclosures. |
Cash Equivalents And Marketable
Cash Equivalents And Marketable Securities | 3 Months Ended |
Mar. 31, 2016 | |
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 marketable securities reported at fair value as of March 31, 2016 and December 31, 2015 are summarized below: (In thousands) March 31, 2016 December 31, 2015 Cash equivalents: Money market mutual funds $ 12,266 $ 6,746 Commercial paper 8,035 1,000 Corporate debt securities 200 1,055 Total cash equivalents 20,501 8,801 Marketable securities: Commercial paper 6,617 8,684 Debt securities issued by U.S. Government agencies 21,661 35,155 Corporate debt securities 24,101 44,972 Total marketable securities, available-for-sale 52,379 88,811 Total cash equivalents and marketable securities $ 72,880 $ 97,612 At March 31, 2016 and December 31, 2015 , the carrying values of the investments included in cash and cash equivalents approximated fair value. The aggregate amortized cost 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 one year or less a s of March 31, 2016 . The Company received total proceeds of $ 43.1 million and $ 10.2 million f rom the sale or maturity of available-for-sale marketable securities during the three months ended March 31, 2016 and 201 5 , respectively. The Company did not recognize any material realized net gains or losses and net unrealized holding gains on available-for-sale marketable securities were less than $0.1 million for each of the three months ended March 31, 2016 and 201 5 , respectively. Unrealized holding gains or losses are included in accumulated other comprehensive loss on the condensed consolidated balance sheets. |
Disclosures About Segments Of A
Disclosures About Segments Of An Enterprise And Related Information | 3 Months Ended |
Mar. 31, 2016 | |
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”). 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 (metro Ethernet, dedicated Internet, voice over IP (“VoIP”) and private line), 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 VoIP which are typically provided to enterprise customers and are included in the Company’s data segment) and the following IP services products: fiber-to-the-premise 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 the Company’s 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: (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended March 31, 2016: Operating revenues $ 29,629 15,828 5,337 - $ 50,794 Cost of revenue 4,568 5,644 - - 10,212 Gross profit 25,061 10,184 5,337 - 40,582 Direct operating and selling costs 1,671 1,042 145 - 2,858 Indirect operating costs 6,169 2,373 55 - 8,597 Corporate general and administrative costs 3,907 1,620 485 5,868 11,880 Adjusted EBITDA (1),(2) 13,314 5,149 4,652 - 23,115 Capital expenditures 21,390 2,222 - (1,606) 22,006 (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended March 31, 2015: Operating revenues $ 27,767 17,265 5,463 - $ 50,495 Cost of revenue 3,942 6,511 - - 10,453 Gross profit 23,825 10,754 5,463 - 40,042 Direct operating and selling costs 1,379 1,032 164 - 2,575 Indirect operating costs 6,455 2,643 55 - 9,153 Corporate general and administrative costs 3,685 1,677 441 1,562 7,365 Adjusted EBITDA (1),(2) 12,306 5,402 4,803 - 22,511 Capital expenditures 23,343 2,123 - 3,758 29,224 (1) Adjusted EBITDA (a non-GAAP measure) is used by the Company’s CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is 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 . (2) In the first quarter of 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the three months ended March 31, 2015. The Company’s CODMs do not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments. 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 segment 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 net (loss) income attributable to Lumos Networks Corp. to Adjusted EBITDA, as defined by the Company, on a consolidated basis for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, (In thousands) 2016 2015 Net (Loss) Income Attributable to Lumos Networks Corp. $ (2,894) $ 2,724 Net Income Attributable to Noncontrolling Interests 55 34 Net (Loss) Income (2,839) 2,758 Income tax (benefit) expense (861) 2,009 Interest expense 6,989 3,486 Gain on interest rate swap derivatives - (82) Other (income) expenses, net (174) 243 Operating Income 3,115 8,414 Depreciation and amortization and accretion of asset retirement obligations 11,925 11,902 Amortization of actuarial losses 338 337 Equity-based compensation 5,530 1,225 Restructuring charges 2,207 633 Adjusted EBITDA $ 23,115 $ 22,511 The Company does not currently have any single customer that individually accounted for more than 10% of the Company’s total operating revenues. The Company’s five largest carrier customers, in the aggregate, accounted for 32% of the Company’s total operating revenues for each of the three months ended March 31, 2016 and 2015. Revenues from these carrier customers were derived primarily from network access, data transport and FTTC services. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 5. Long-Term Debt As of March 31, 2016 and December 31, 2015 , the Company’s outstanding long-term debt consisted of the following: March 31, 2016 December 31, 2015 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 348,415 $ 4,343 $ 348,415 $ 4,705 8% Notes due 2022 150,000 28,871 150,000 29,607 Capital lease o bligations 10,419 - 2,597 - Long-term debt 508,834 33,214 501,012 34,312 Less: Current portion of long-term debt 13,992 - 10,400 - Long-term debt, excluding current portion $ 494,842 $ 33,214 $ 490,612 $ 34,312 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 (“Term Loan A”), a $275 million senior secured six-year term loan (“Term Loan B”); a $28 million senior secured incremental term loan , which was added through an amendment to the Credit Facility dated January 2, 2015, (“Term Loan C”); and a $50 million senior secured five -year revolving credit facility (the “Revolver”). The proceeds from Term Loan A and 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. The Company is using the net proceeds from Term Loan C to fund new FTTC projects. As of March 31, 2016 , no borrowings were outstanding under the Revolver. On August 6, 2015, the Company prepaid $40.0 million of the outstanding principal of the Credit Facility, which was allocated ratably to Term Loans A, B and C. The Company used proceeds from the issuance of the 8% Notes due 2022, discussed below, to fund these prepayments. Pricing of the amended Credit Facility is LIBOR plus 3.00% for the Revolver and Term Loan A and LIBOR plus 3.25% for Term Loan B and C . The Credit Facility does not require a minimum LIBOR rate. Term Loan A matures in 2018 with quarterly payments of 1.25% per annum through December 31, 2016 and 2.50% per annum thereafter. Term Loan B matures in 2019 with quarterly payments of 1% per annum. Term Loan C matures in 2019 with quarterly payments of 1% per annum . 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 amended Credit Facility includes various restrictions and conditions, including a maximum leverage ratio of 4.75 :1 .00 through December 31, 2016, 4.50 :1.00 through December 31, 2017, 4.25 :1.00 through December 31, 2018, and 4.00 :1.00 thereafter. The amended Credit Facility also sets a minimum interest rate coverage ratio of 3.25 :1.00. At March 31, 2016 , the Company’s leverage ratio was 3.86 :1.00 and its interest coverage ratio was 6.74 :1.00. The Company was in compliance with its debt covenants as of March 31, 2016 . The Company’s effective interest rate on its Credit Facility for the three months ended March 31, 2016 was 4.08 %. 8% Notes due 2022 On August 6, 2015, the Company issued $150 million in unsecured promissory notes (the “8% Notes”) to an affiliate of Pamplona Capital Management LLC (“Pamplona”). The net proceeds of the Notes, after a $1.5 million purchasers discount and payment of $ 7.1 million of closing costs, were used to prepay $40.0 million of the Company’s existing Credit Facility with the remainder to be used for general corporate purposes, including to fund future growth opportunities. The Notes bear interest at an annual fixed rate of 8.00% and mature on August 15, 2022. Interest is payable in arrears on a quarterly basis on August 15, November 15, February 15, and May 15 of each year. Interest is payable in cash or, at the election of the Company, through the issuance of additional notes or by adding the amount of the accrued interest to the unpaid principal amount of the Notes outstanding at that time. The Notes were also issued with 5,500,000 warrants for no additional consideration to purchase shares of the Company’s common stock (the “Warrants”). The Company allocated the net proceeds received from the debt issuance to the 8% Notes and the equity-classified Warrants based on the relative fair value of the instruments. As a result, the Company recognized a total discount on the 8% Notes of $24.8 million of which $23.5 million represents the value assigned to the Warrants, and $1.3 million represents the allocated portion of the aforementioned $1.5 million purchasers discount. The discount on the 8% Notes is being amortized to interest expense over the life of the debt using the effective interest method. See Note 10 for additional details regarding the Warrants. In connection with the issuance of the 8% Notes in August 2015 and the Term Loan C financing in January 2015, the Company deferred an additional $ 6.0 million and $0.9 million, respectively, in debt issuance costs. Total unamortized debt issuance costs associated with the 8% Notes and Credit Facility are included in the table above, which amounts are included as a reduction of long-term debt in the condensed consolidated balance sheets in accordance with ASU 2015-03. These costs are being amortized to interest expense over the life of the debt using the effective interest method. Amortization of debt issuance costs were $ 1.1 million and $0.4 million for the three months ended March 31, 2016 and 2015, respectively. The Company’s effective interest rate on the 8% Notes for the three months ended March 31, 2016 was 12.55%, which represents the contractual rate adjusted for the aforementioned discount and deferred debt issuance costs. Cobank Patronage Credits 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 statements of income as an offset to interest expense. The Patronage credits were $ 0.3 million and $0.4 million for the three months ended March 31, 2016 and 2015, respectively. The aggregate maturities of Term Loan A, Term Loan B and Term Loan C under the Credit Facility are $ 8.0 million in the remainder of 2016, $ 13.0 million in 2017, $ 70.8 million in 2018 and $ 256.5 million in 2019. The Revolver under the Credit Facility, under which no borrowings are outstanding as of March 31, 2016 , matures in full in 2018. The 8% Notes mature for $150.0 million in 2022. 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. The Company also has financing arrangements with separate providers related to the upgrading of internal infrastructure, including certain software licens es, and an indefeasible right of use (“IRU”) network capacity arrangement, which was entered into in January 2016. Both the software licenses and IRU network capacity arrangement are classified as capital leases. The software agreement extends through 2016 with payments due annually. The IRU network capacity arrangement extends through 2035 with payments due monthly. As of March 31, 2016 , the combined total net present value of the Company’s future minimum lease payments is $ 10.4 million and the principal portion of these capital lease obligations is due as follows: $ 2.6 million in the remainder of 2016, $ 0.5 million in 2017, $ 0.4 million in 2018, $ 0.4 million in 2019, $0. 4 million in 2020 and $ 6.1 million thereafter. The historical cost and accumulated amortization for each of the related assets associated with the capital leases is as follows as of March 31, 2016: March 31, 2016 (In thousands) Historical Cost Accumulated Amortization Vehicles $ 2,723 $ (1,441) Software 5,200 (3,294) Network capacity IRU 8,871 (111) Total capital lease obligations $ 16,794 $ (4,846) |
Supplementary Disclosures Of Ca
Supplementary Disclosures Of Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 : Three Months Ended March 31, (In thousands) 2016 2015 Cash payments for: Interest (net of amounts capitalized) $ 5,109 $ 2,533 Income taxes 114 172 Supplemental investing and financing activities: Additions to property, plant and equipment included in accounts payable 6,328 3,800 Obligations incurred under capital leases 7,936 - Cash payments for interest for the three months ended March 31, 2016 in the table above are each net of $0.8 million of cash received from CoBank for patronage credits (Note 5). The amount of interest capitalized was $0.4 million and $0. 3 million for the three months ended March 31, 2016 and 2015, respectively. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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, accounts receivable, accounts payable, capital lease obligations (including the current portion), accrued liabilities, the Credit Facility (including the current portion) and the 8% Notes as of March 31, 2016 and December 31, 2015 . The carrying values of cash and cash equivalents, accounts receivable, accounts payable, capital lease obligations and accrued liabilities approximated their fair values at March 31, 2016 and December 31, 2015 . Marketable securities are recorded in the condensed consolidated balance sheets at fair value (see Note 3). T he following tables present the placement in the fair value hierarchy of financial assets that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 : Fair Value Measurements at March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ 12,266 $ - $ - $ 12,266 Commercial paper - 8,035 - 8,035 Corporate debt securities - 200 - 200 Total cash equivalents 12,266 8,235 - 20,501 Marketable securities: Commercial paper - 6,617 - 6,617 Debt securities issued by U.S. Government agencies - 21,661 - 21,661 Corporate debt securities - 24,101 - 24,101 Total marketable securities - 52,379 - 52,379 Total financial assets $ 12,266 $ 60,614 $ - $ 72,880 Fair Value Measurements at December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ 6,746 $ - $ - $ 6,746 Commercial paper - 1,000 - 1,000 Corporate debt securities - 1,055 - 1,055 Total cash equivalents 6,746 2,055 - 8,801 Marketable securities: Commercial paper - 8,684 - 8,684 Debt securities issued by U.S. Government agencies - 35,155 - 35,155 Corporate debt securities - 44,972 - 44,972 Total marketable securities - 88,811 - 88,811 Total financial assets $ 6,746 $ 90,866 $ - $ 97,612 The fair value of commercial paper 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, the Company classifies these fair value measurements as Level 2 within the fair value hierarchy. 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. March 31, 2016 December 31, 2015 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 344,072 $ 292,733 $ 343,710 $ 298,400 8% Notes Due 2022 121,129 132,494 120,393 132,028 Capital Lease Obligations 10,419 10,419 2,597 2,597 The respective fair value s of the Credit Facility and the 8% Notes were 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 $1.2 million as of March 31, 2016 and December 31, 2015 , of which $1.1 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 t he Credit Facility held by CoBank. This investment is carried under the cost method. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Equity | Note 8. Equity Below is a summary of the activity and status of equity as of and for the three months ended March 31, 2016 : (In thousands, except per share amounts) Common Shares Treasury Shares Common Stock Additional Paid-in Capital Treasury Stock Accumulated Deficit Accumulated Other Comprehensive Loss, net of tax Total Lumos Networks Corp. Stockholders' Equity Noncontrolling Interests Total Equity Balance, December 31, 2015 23,005 13 $ 230 $ 171,746 $ (103) $ (28,541) $ (11,940) $ 131,392 $ 939 $ 132,331 Net loss attributable to Lumos Networks Corp. - - - - - (2,894) - (2,894) - (2,894) Other comprehensive income, net of tax - - - - - - 231 231 - 231 Equity-based compensation expense - - - 5,486 - - - 5,486 - 5,486 Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) 478 204 5 387 (2,397) - - (2,005) - (2,005) Stock option exercises 1 - - 11 - - - 11 - 11 Net income attributable to noncontrolling interests - - - - - - - - 55 55 Balance, March 31, 2016 23,484 217 $ 235 $ 177,630 $ (2,500) $ (31,435) $ (11,709) $ 132,221 $ 994 $ 133,215 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 9. Earnings (Loss) per Share The Company computes basic earnings (loss) per share by dividing net income (loss) 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 (loss) 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 (loss) per share for the three months ended March 31, 2016 and 201 5 are detailed in the following table. Three Months Ended March 31, (In thousands, except per share amounts) 2016 2015 Numerator: Net (loss) income attributable to Lumos Networks Corp. $ (2,894) $ 2,724 Less: net income attributable to Lumos Networks Corp. allocable to participating securities - (75) Numerator for basic and diluted earnings per common share (2,894) 2,649 Denominator: Weighted average basic shares outstanding 22,850 22,599 Less: weighted average participating securities and nonvested performance-based restricted shares (795) (646) Denominator for basic earnings per common share 22,055 21,953 Plus: potentially dilutive restricted shares and stock options - 446 Denominator for diluted earnings per common share 22,055 22,399 Basic and diluted (loss) earnings per share $ (0.13) $ 0.12 For the three months ended March 31, 2016 , the denominator for diluted loss per common share is equivalent to the denominator for basic loss per common share because the addition of stock options and unvested restricted stock (totaling 871,370 and 356,217 , respectively) would be antidilutive for the period. For the three months ended March 31, 2015, the denominator for diluted earnings per share excludes 429,222 and 179,000 shares, respectively, related to stock options and nonvested restricted stock which would be antidilutive for each period. The earnings (loss) per share calculation for the three months ended March 31, 2016 also excludes th e 5,500,000 outstanding stock warrants described in Note 10 as they would be antidilutive for the period. |
Stock Options, Restricted Stock
Stock Options, Restricted Stock and Stock Warrants | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [Abstract] | |
Stock Options, Restricted Stock and Stock Warrants | Note 10. Stock Options, Restricted Stock and Stock Warrants Stock Options and Restricted Stock 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. As of March 31, 2016 , the maximum number of shares of common stock available for awards under the Equity and Cash Incentive Plan was 5,500,000 and 889,011 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 no stock options and 138,474 shares of restricted stock under the Equity and Cash Incentive Plan during the three months ended March 31, 2016 . 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. A summary of the activ ity and status of the Company’s stock options for the three months ended March 31, 2016 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, 2015 2,182 $ 12.57 Granted during the period - - Exercised during the period (1) 9.32 Forfeited during the period (32) 14.12 Expired during the period (102) 13.38 Stock options outstanding at March 31, 2016 2,047 $ 12.51 5.3 years $ 3,187 Stock options exercisable at March 31, 2016 1,513 $ 12.35 4.7 years $ 2,417 Total stock options outstanding, vested and expected to vest at March 31, 2016 2,009 $ 12.52 $ 3,109 The total fair value of options that vested during the three months ended March 31, 2016 was $ 0.3 million. As of March 31, 2016 , there was $ 1.3 million of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2 .3 years. A summary of the activity and status of the Company’s restricted stock for the three months ended March 31, 2016 , is as follows: (In thousands, except per share amounts) Shares Weighted-Average Grant Date Fair Value per Share Restricted stock outstanding at December 31, 2015 861 $ 14.37 Granted during the period 139 11.68 Vested during the period (201) 11.98 Forfeited during the period (71) 16.78 Restricted stock outstanding at March 31, 2016 728 $ 14.28 As of March 31, 2016 , there was $ 5.8 million of total unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted-average period of 1.9 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 three months ended March 31, 2016 , 1, 636 shares were issued under the employee stock purchase plan. Compensation expense associated with the employee stock purchase plan was not material for the three months ended March 31, 2016 . Stock Warrants A summary of the activity and status of the Company’s stock warrants for the three months ended March 31, 2016 , is as follows: (In thousands, except per share amounts) Shares Weighted Average Exercise Price per Share Stock warrants outstanding at December 31, 2015 5,500 $ 13.99 Granted during the period - - Exercised during the period - - Expired during the period - - Stock warrants outstanding at March 31, 2016 5,500 $ 13.99 Outstanding warrants consist of those issued on August 6, 2015 in conjunction with the 8% Notes issuance discussed in Note 5 (the “Warrants”). The Warrants are fully vested and exercisable and may be net-share settled on a cashless basis only until they expire on August 6, 2022. A portion of the net proceeds from the 8% Notes issuance was allocated to the equity-classified Warrants based on the relative fair value of the instruments. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11. Income Taxes Income tax (benefit) expense for the three months ended March 31, 2016 and 2015 was ($0.9) million and $2.0 million, respectively, which represents the federal statutory tax rate applied to pre-tax (loss) 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 and, applicable to the three months ended March 31, 2016, non-deductible interest on the 8% Notes, which are treated as applicable high yield discount obligations (“AHYDO”) within the meaning of Section 163(i)(1) of the Internal Revenue Code, as amended. While management believes the Company 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 2012 and thereafter remain open and subject to federal and state audit examinations. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions ValleyNet, an equity method investee of the Company, resells capacity on the Company’s fiber network under an operating lease agreement. Facility lease revenue from ValleyNet was approximately $1.2 million for each of the three months ended March 31, 2016 and 2015, respectively, which is presented in the Company’s data segment revenues. The Company had accounts receivable from ValleyNet of $0.4 million at both March 31, 2016 and December 31, 2015. The Company also leases and resells capacity from ValleyNet. The total lease expense was $0.3 million and $0.2 million for the three months ended March 31, 2016 and 2015, respectively. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Note 13. Restructuring Charges In January 2016 , the Company commenced a reduction-in- force and incurred employee severance and termination benefits of $2.2 million for the three months ended March 31, 2016. The Company does not expect to incur additional costs associated with these restructuring activities in future periods. The following table provides a break-down of these costs by business segment for the three months ended March 31, 2016: (In thousands) Data R&SB RLEC Access Total Employee severance and termination benefits $ 1,605 $ 497 $ 105 $ 2,207 Total restructuring charges $ 1,605 $ 497 $ 105 $ 2,207 A liability for restructuring charges in the amount of $1.3 million is included in the Company’s condensed consolidated balance sheet as of March 31, 2016, related to employee termination costs accrued but not yet paid. Below is a summary of the restructuring liability balance as of March 31, 2016: (In thousands) Employee Severance and Termination Benefits Total Beginning balance at December 31, 2015 $ - $ - Additions 2,207 2,207 Payments (891) (891) Ending balance at March 31, 2016 $ 1,316 $ 1,316 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | Note 14. 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 $ 6.3 million as of March 31, 2016 , which are expected to be satisfied during the remainder of 2016. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
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 opinion of management, the accompanying unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2016 and 2015 contain all adjustments necessary to present fairly in all material respects the Company’s financial position 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 months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. The accompanying condensed consolidated balance sheet as of December 31, 2015 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, 2015 . |
Accounting Estimates | Accounting Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (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 condensed 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 and customer credits, deferred tax assets, marketable securities, asset retirement obligations, stock warrants 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 persuasive evidence of an arrangement exists, services are rendered or products are delivered, installed and functional, as applicable, the price to the buyer is fixed or determinable and collectability is reasonably assured. 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 to other carriers. Revenues for equipment sales are recognized at the point of sale. |
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’s marketable securities at March 31, 2016 and December 31, 2015 consist of debt securities not classified as cash equivalents. The Company classifies such debt securities as either held-to-maturity, when the Company has the positive intent and ability to hold the securities to maturity, or available-for-sale. Held-to-maturity debt securities are carried at amortized cost, adjusted for the amortization of premiums or accretion of discounts. Available-for-sale securities are carried at fair value, with 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 March 31, 2016 and December 31, 2015 . |
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 estimates 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 in the condensed consolidated statements of operations. Bad debt expense for each of the three months ended March 31, 2016 and 2015 was $0. 1 million . The Company’s allowance for doubtful accounts and customer credits was $ 1. 1 million and $1.2 million as of March 31, 2016 and December 31, 2015 . The following table presents a roll-forward of the Company’s allowance for doubtful accounts and customer credits from December 31, 2015 to March 31, 2016 : Additions (In thousands) December 31, 2015 Charged to Expense Charged to Other Accounts Deductions March 31, 2016 Allowance for doubtful accounts and customer credits $ 1,235 $ 134 $ (193) $ (65) $ 1,111 |
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 March 31, 2016 that would require the Company 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 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 and an indefeasible right of use agreement, is included with depreciation expense. Intangibles with a finite life are classified as other intangibles on the condensed consolidated balance sheets. At March 31, 2016 and December 31, 2015 , other intangibles were comprised of the following: March 31, 2016 December 31, 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,654) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,882) 2,862 (1,841) Total $ 105,970 $ (95,536) $ 105,970 $ (94,892) 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 months ended March 31, 2016 . Amortization expense for the three months ended March 31, 2016 and 2015 was $ 0.6 million and $ 2.1 million, respectively. Amortization expense for the remainder of 2016 and for the next five years is expected to be as follows: (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2016 $ 1,809 $ 122 $ 1,931 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 1 1,113 |
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 intangible 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 it to evaluate the carrying amount of goodwill or indefinite-lived intangible assets during the three months ended March 31, 2016 . |
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. 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 months ended March 31, 2016 and 2015 , the components of the Company’s net periodic benefit cost (income) for the Pension Plan were as follows: Three Months Ended March 31, (In thousands) 2016 2015 Service cost $ - $ - Interest cost 674 666 Expected return on plan assets (884) (1,028) Amortization of loss 262 248 Net periodic benefit cost (income) $ 52 $ (114) Pension Plan assets were valued at $ 53.4 million and $ 5 3.9 million at March 31, 2016 and December 31, 2015 , respectively. No funding contributions were made during the three months ended March 31, 2016 , and the Company does not expect to make a funding contribution during the remainder of 2016. The Company also provides life insurance benefits for retired employees that meet eligibility requirements through two postretirement welfare benefit plans (the “Other Postretirement Benefit Plans”). The Company had provided retiree medical benefits under these plans until those benefits were terminated effective December 31, 2014 . The Company did not incur any significant costs associated with these plans during the three months ended March 31, 2016 or 2015. The Company recognized expense for certain nonqualified pension plans for each of the three months ended March 31, 2016 and 2015 of $0.1 million , and less than $0.1 million of this expense for each of these periods relates to the amortization of actuarial loss. The gross amount reclassified out of accumulated other comprehensive loss related to amortization of actuarial losses for retirement plans for each of the three months ended March 31, 2016 and 2015 was $ 0. 3 million, all of which has been reclassified to selling, general and administrative on the condensed consolidated statements of operations. Income taxes associated with these reclassifications were $0.1 million for each of the three months ended March 31, 2016 and 2015. |
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. 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, annual employee bonuses paid in the form of immediately vested shares and the Company’s 401(k) matching contributions was $ 5.5 million and $ 1.2 million for the three months ended March 31, 2016 and 2015 , respectively, which amounts are included in selling, general and administrative expenses on the condensed consolidated statements of operations. Future charges for equity-based compensation related to instruments outstanding at March 31, 2016 are estimated to be $ 3 .3 million for the remainder of 2016, $ 3.2 million in 2017, $ 1.2 million in 2018, $ 0.1 million in 2019, and less than $ 0.1 million thereafter. |
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. 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 May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015-14”), which defers the effective date of ASU 2014-09 for public business entities from annual reporting periods beginning after December 15, 2016, to annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016. ASU 2014-09 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. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 820): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 provides a revised consolidation model for all reporting entities to use in evaluating whether they should consolidate certain legal entities. All legal entities will be subject to reevaluation under this revised consolidation model. The revised consolidation model, among other things, (i) modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, and (iii) modifies the consolidation analysis of reporting entities that are involved with VIEs through fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after September 1, 2016. The Company does not expect the future adoption of ASU 2015-02 to have a material impact on the its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will replace most existing lease guidance in U.S. GAAP when it becomes effective. ASU 2016-02 requires an entity to recognize most leases, including operating leases, on the consolidated balance sheet of the lessee. ASU 2016-02 is effective for public business entities for annual reporting periods beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 requires the use of a modified retrospective transition method with elective reliefs. The Company is still evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and disclosures . In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplifies the accounting for share-based payment transactions. Among other things, ASU 2016-09 provides for (i) the simplification of accounting presentation of excess tax benefits and tax deficiencies, (ii) an accounting policy election regarding forfeitures to use an estimate or account for when incurred, and (iii) simplification of cash flow presentation for statutory tax rate withholding. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The transition method required by ASU 2016-09 varies by amendment. The Company is still evaluating the effect that ASU 2016-09 will have on its consolidated financial statements and disclosures. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Additions (In thousands) December 31, 2015 Charged to Expense Charged to Other Accounts Deductions March 31, 2016 Allowance for doubtful accounts and customer credits $ 1,235 $ 134 $ (193) $ (65) $ 1,111 |
Finite-Lived Intangibles Assets | March 31, 2016 December 31, 2015 (Dollars in thousands) Estimated Life Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Customer relationships 6 to 15 yrs $ 103,108 $ (93,654) $ 103,108 $ (93,051) Trademarks and franchise rights 10 to 15 yrs 2,862 (1,882) 2,862 (1,841) Total $ 105,970 $ (95,536) $ 105,970 $ (94,892) |
Schedule Of Future Amortization Expense | (In thousands) Customer Relationships Trademarks and Franchise Rights Total Remainder of 2016 $ 1,809 $ 122 $ 1,931 2017 2,093 163 2,256 2018 1,781 163 1,944 2019 1,513 152 1,665 2020 1,146 48 1,194 2021 1,112 1 1,113 |
Schedule Of Net Periodic (Benefit) Expense | Three Months Ended March 31, (In thousands) 2016 2015 Service cost $ - $ - Interest cost 674 666 Expected return on plan assets (884) (1,028) Amortization of loss 262 248 Net periodic benefit cost (income) $ 52 $ (114) |
Cash Equivalents And Marketab23
Cash Equivalents And Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cash Equivalents And Marketable Securities [Abstract] | |
Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value | (In thousands) March 31, 2016 December 31, 2015 Cash equivalents: Money market mutual funds $ 12,266 $ 6,746 Commercial paper 8,035 1,000 Corporate debt securities 200 1,055 Total cash equivalents 20,501 8,801 Marketable securities: Commercial paper 6,617 8,684 Debt securities issued by U.S. Government agencies 21,661 35,155 Corporate debt securities 24,101 44,972 Total marketable securities, available-for-sale 52,379 88,811 Total cash equivalents and marketable securities $ 72,880 $ 97,612 |
Disclosures About Segments of24
Disclosures About Segments of an Enterprise and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | |
Summarized Financial Information Of Reportable Segments | Summarized financial information concerning the Company’s reportable segments is presented in the following table: (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended March 31, 2016: Operating revenues $ 29,629 15,828 5,337 - $ 50,794 Cost of revenue 4,568 5,644 - - 10,212 Gross profit 25,061 10,184 5,337 - 40,582 Direct operating and selling costs 1,671 1,042 145 - 2,858 Indirect operating costs 6,169 2,373 55 - 8,597 Corporate general and administrative costs 3,907 1,620 485 5,868 11,880 Adjusted EBITDA (1),(2) 13,314 5,149 4,652 - 23,115 Capital expenditures 21,390 2,222 - (1,606) 22,006 (In thousands) Data R&SB RLEC Access Corporate (Unallocated) Total For the three months ended March 31, 2015: Operating revenues $ 27,767 17,265 5,463 - $ 50,495 Cost of revenue 3,942 6,511 - - 10,453 Gross profit 23,825 10,754 5,463 - 40,042 Direct operating and selling costs 1,379 1,032 164 - 2,575 Indirect operating costs 6,455 2,643 55 - 9,153 Corporate general and administrative costs 3,685 1,677 441 1,562 7,365 Adjusted EBITDA (1),(2) 12,306 5,402 4,803 - 22,511 Capital expenditures 23,343 2,123 - 3,758 29,224 (1) Adjusted EBITDA (a non-GAAP measure) is used by the Company’s CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is 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 . (2) In the first quarter of 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the three months ended March 31, 2015. |
Reconciliation Of Net Income Attributable to Lumos Networks Corp. to Adjusted EBITDA | Three Months Ended March 31, (In thousands) 2016 2015 Net (Loss) Income Attributable to Lumos Networks Corp. $ (2,894) $ 2,724 Net Income Attributable to Noncontrolling Interests 55 34 Net (Loss) Income (2,839) 2,758 Income tax (benefit) expense (861) 2,009 Interest expense 6,989 3,486 Gain on interest rate swap derivatives - (82) Other (income) expenses, net (174) 243 Operating Income 3,115 8,414 Depreciation and amortization and accretion of asset retirement obligations 11,925 11,902 Amortization of actuarial losses 338 337 Equity-based compensation 5,530 1,225 Restructuring charges 2,207 633 Adjusted EBITDA $ 23,115 $ 22,511 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | March 31, 2016 December 31, 2015 (In thousands) Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs Credit Facility $ 348,415 $ 4,343 $ 348,415 $ 4,705 8% Notes due 2022 150,000 28,871 150,000 29,607 Capital lease o bligations 10,419 - 2,597 - Long-term debt 508,834 33,214 501,012 34,312 Less: Current portion of long-term debt 13,992 - 10,400 - Long-term debt, excluding current portion $ 494,842 $ 33,214 $ 490,612 $ 34,312 |
Schedule of Capital Leased Assets [Table Text Block] | March 31, 2016 (In thousands) Historical Cost Accumulated Amortization Vehicles $ 2,723 $ (1,441) Software 5,200 (3,294) Network capacity IRU 8,871 (111) Total capital lease obligations $ 16,794 $ (4,846) |
Supplementary Disclosures Of 26
Supplementary Disclosures Of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | |
Supplementary Disclosures of Cash Flow Information | Three Months Ended March 31, (In thousands) 2016 2015 Cash payments for: Interest (net of amounts capitalized) $ 5,109 $ 2,533 Income taxes 114 172 Supplemental investing and financing activities: Additions to property, plant and equipment included in accounts payable 6,328 3,800 Obligations incurred under capital leases 7,936 - |
Fair Value Of Financial Instr27
Fair Value Of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Summary Of Financial Assets Measured At Fair Value | Fair Value Measurements at March 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ 12,266 $ - $ - $ 12,266 Commercial paper - 8,035 - 8,035 Corporate debt securities - 200 - 200 Total cash equivalents 12,266 8,235 - 20,501 Marketable securities: Commercial paper - 6,617 - 6,617 Debt securities issued by U.S. Government agencies - 21,661 - 21,661 Corporate debt securities - 24,101 - 24,101 Total marketable securities - 52,379 - 52,379 Total financial assets $ 12,266 $ 60,614 $ - $ 72,880 Fair Value Measurements at December 31, 2015 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Cash equivalents: Money market mutual funds $ 6,746 $ - $ - $ 6,746 Commercial paper - 1,000 - 1,000 Corporate debt securities - 1,055 - 1,055 Total cash equivalents 6,746 2,055 - 8,801 Marketable securities: Commercial paper - 8,684 - 8,684 Debt securities issued by U.S. Government agencies - 35,155 - 35,155 Corporate debt securities - 44,972 - 44,972 Total marketable securities - 88,811 - 88,811 Total financial assets $ 6,746 $ 90,866 $ - $ 97,612 |
Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt | March 31, 2016 December 31, 2015 (In thousands) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Credit Facility $ 344,072 $ 292,733 $ 343,710 $ 298,400 8% Notes Due 2022 121,129 132,494 120,393 132,028 Capital Lease Obligations 10,419 10,419 2,597 2,597 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Deficit Accumulated Other Comprehensive Loss, net of tax Total Lumos Networks Corp. Stockholders' Equity Noncontrolling Interests Total Equity Balance, December 31, 2015 23,005 13 $ 230 $ 171,746 $ (103) $ (28,541) $ (11,940) $ 131,392 $ 939 $ 132,331 Net loss attributable to Lumos Networks Corp. - - - - - (2,894) - (2,894) - (2,894) Other comprehensive income, net of tax - - - - - - 231 231 - 231 Equity-based compensation expense - - - 5,486 - - - 5,486 - 5,486 Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) 478 204 5 387 (2,397) - - (2,005) - (2,005) Stock option exercises 1 - - 11 - - - 11 - 11 Net income attributable to noncontrolling interests - - - - - - - - 55 55 Balance, March 31, 2016 23,484 217 $ 235 $ 177,630 $ (2,500) $ (31,435) $ (11,709) $ 132,221 $ 994 $ 133,215 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule Of Computation Of Basic And Diluted Earnings (Loss) Per Share | Three Months Ended March 31, (In thousands, except per share amounts) 2016 2015 Numerator: Net (loss) income attributable to Lumos Networks Corp. $ (2,894) $ 2,724 Less: net income attributable to Lumos Networks Corp. allocable to participating securities - (75) Numerator for basic and diluted earnings per common share (2,894) 2,649 Denominator: Weighted average basic shares outstanding 22,850 22,599 Less: weighted average participating securities and nonvested performance-based restricted shares (795) (646) Denominator for basic earnings per common share 22,055 21,953 Plus: potentially dilutive restricted shares and stock options - 446 Denominator for diluted earnings per common share 22,055 22,399 Basic and diluted (loss) earnings per share $ (0.13) $ 0.12 |
Stock Options, Restricted Sto30
Stock Options, Restricted Stock and Stock Warrants (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments And Stock Warrant [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, 2015 2,182 $ 12.57 Granted during the period - - Exercised during the period (1) 9.32 Forfeited during the period (32) 14.12 Expired during the period (102) 13.38 Stock options outstanding at March 31, 2016 2,047 $ 12.51 5.3 years $ 3,187 Stock options exercisable at March 31, 2016 1,513 $ 12.35 4.7 years $ 2,417 Total stock options outstanding, vested and expected to vest at March 31, 2016 2,009 $ 12.52 $ 3,109 |
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, 2015 861 $ 14.37 Granted during the period 139 11.68 Vested during the period (201) 11.98 Forfeited during the period (71) 16.78 Restricted stock outstanding at March 31, 2016 728 $ 14.28 |
Summary of Warrant Activity | (In thousands, except per share amounts) Shares Weighted Average Exercise Price per Share Stock warrants outstanding at December 31, 2015 5,500 $ 13.99 Granted during the period - - Exercised during the period - - Expired during the period - - Stock warrants outstanding at March 31, 2016 5,500 $ 13.99 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Charges [Abstract] | |
Schedule Of Restructuring Costs By Business Segments | (In thousands) Data R&SB RLEC Access Total Employee severance and termination benefits $ 1,605 $ 497 $ 105 $ 2,207 Total restructuring charges $ 1,605 $ 497 $ 105 $ 2,207 |
Summary Of Restucturing Liability Balance | (In thousands) Employee Severance and Termination Benefits Total Beginning balance at December 31, 2015 $ - $ - Additions 2,207 2,207 Payments (891) (891) Ending balance at March 31, 2016 $ 1,316 $ 1,316 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Bad Debt Expenses | $ 100 | $ 100 | |
Accounts receivable, allowance | 1,111 | $ 1,235 | |
Finite-Lived Intangible Assets, Cost Incurred to Renew or Extend | 0 | ||
Amortization | 644 | 2,146 | |
Defined Benefit Plan, Fair Value of Plan Assets | 53,400 | $ 53,900 | |
Defined Benefit Plan, Contributions by Employer | $ 0 | ||
Qualified Nonpension Postretirement Benefit Plans | 2 | ||
Nonqualified Pension Plans Expense | $ 100 | 100 | |
Other Comprehensive Income (Loss), Tax | 148 | 135 | |
Equity-based compensation, exclusive of restructuring charges | 5,530 | 1,225 | |
Future Charges For Equity-Based Compensation Year 1 | 3,300 | ||
Future Charges For Equity-Based Compensation Year 2 | 3,200 | ||
Future Charges For Equity-Based Compensation Year 3 | 1,200 | ||
Future Charges For Equity-Based Compensation Year 4 | 100 | ||
Maximum [Member] | |||
Amortization Of Unrealized Gain Loss On Nonqualified Pension Plans | 100 | $ 100 | |
Future Charges For Equity Based Compensation Year 5 | $ 100 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Schedule Of Allowance For Doubtful Accounts) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |
Allowance for doubtful accounts, beginning | $ 1,235 |
Charged to Expense | 134 |
Charged to Other Accounts | (193) |
Deductions | (65) |
Allowance for doubtful accounts, Balance at End of Period | $ 1,111 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Finite-Lived Intangibles Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (95,536) | $ (94,892) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 103,108 | 103,108 |
Accumulated Amortization | (93,654) | (93,051) |
Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,862 | 2,862 |
Accumulated Amortization | $ (1,882) | $ (1,841) |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 6 years | |
Minimum [Member] | Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 10 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 15 years | |
Maximum [Member] | Trademarks And Franchise Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated life | 15 years |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Schedule Of Future Amortization Expense) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2016 | $ 1,809 |
2,017 | 2,093 |
2,018 | 1,781 |
2,019 | 1,513 |
2,020 | 1,146 |
2,021 | 1,112 |
Trademarks And Franchise Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2016 | 122 |
2,017 | 163 |
2,018 | 163 |
2,019 | 152 |
2,020 | 48 |
2,021 | $ 1 |
Summary Of Significant Accoun36
Summary Of Significant Accounting Policies (Schedule Of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 674 | $ 666 |
Expected return on plan assets | (884) | (1,028) |
Amortization of loss | 262 | 248 |
Net periodic benefit cost (income) | 52 | (114) |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost (income) | $ 0 | $ 0 |
Cash Equivalents And Marketab37
Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Due in one year or less | $ 52,379,000 | |
Total proceeds from the sale or maturity of available-for-sale marketable securities | 43,125,000 | $ 10,220,000 |
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 Marketab38
Cash Equivalents And Marketable Securities (Schedule Of Cash Equivalents And Available-For-Sale Securities Reported At Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | $ 20,501 | $ 8,801 |
Total marketable securities, available-for-sale | 52,379 | 88,811 |
Total cash equivalents and marketable securities | 72,880 | 97,612 |
Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 12,266 | 6,746 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 200 | 1,055 |
Commercial Paper ST [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents | 8,035 | 1,000 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 6,617 | 8,684 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | 24,101 | 44,972 |
Debt Securities issued by U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total marketable securities, available-for-sale | $ 21,661 | $ 35,155 |
Disclosures About Segments of39
Disclosures About Segments of an Enterprise and Related Information (Narrative) (Details) - customer | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosures About Segments Of An Enterprise And Related Information [Abstract] | ||
Number of customers that individually accounted for approximately 10% of total revenues | 0 | |
Percentage to total revenue | 32.00% | 32.00% |
Disclosures About Segments of40
Disclosures About Segments of an Enterprise and Related Information (Summarized Financial Information Of Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ 50,794 | $ 50,495 | |
Cost of revenue | 10,212 | 10,453 | |
Gross profit | 40,582 | 40,042 | |
Direct operating and selling costs | 2,858 | 2,575 | |
Indirect operating costs | 8,597 | 9,153 | |
Corporate general and administrative costs | 11,880 | 7,365 | |
Adjusted EBITDA | [1],[2] | 23,115 | 22,511 |
Capital expenditures | 22,006 | 29,224 | |
Data [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 29,629 | 27,767 | |
Cost of revenue | 4,568 | 3,942 | |
Gross profit | 25,061 | 23,825 | |
Direct operating and selling costs | 1,671 | 1,379 | |
Indirect operating costs | 6,169 | 6,455 | |
Corporate general and administrative costs | 3,907 | 3,685 | |
Adjusted EBITDA | [1],[2] | 13,314 | 12,306 |
Capital expenditures | 21,390 | 23,343 | |
R&SB [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 15,828 | 17,265 | |
Cost of revenue | 5,644 | 6,511 | |
Gross profit | 10,184 | 10,754 | |
Direct operating and selling costs | 1,042 | 1,032 | |
Indirect operating costs | 2,373 | 2,643 | |
Corporate general and administrative costs | 1,620 | 1,677 | |
Adjusted EBITDA | [1],[2] | 5,149 | 5,402 |
Capital expenditures | 2,222 | 2,123 | |
RLEC Access [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 5,337 | 5,463 | |
Gross profit | 5,337 | 5,463 | |
Direct operating and selling costs | 145 | 164 | |
Indirect operating costs | 55 | 55 | |
Corporate general and administrative costs | 485 | 441 | |
Adjusted EBITDA | [1],[2] | 4,652 | 4,803 |
Corporate (Unallocated) [Member] | |||
Segment Reporting Information [Line Items] | |||
Corporate general and administrative costs | 5,868 | 1,562 | |
Capital expenditures | $ (1,606) | $ 3,758 | |
[1] | Adjusted EBITDA (a non-GAAP measure) is used by the Company's CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is 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. | ||
[2] | In the first quarter of 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the three months ended March 31, 2015. |
Disclosures About Segments of41
Disclosures About Segments of an Enterprise and Related Information (Reconciliation of Net Income Attributable to Lumos Networks Corp. to Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | |||
Net (Loss) Income Attributable to Lumos Networks Corp. | $ (2,894) | $ 2,724 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 55 | 34 | |
Net (Loss) Income | (2,839) | 2,758 | |
Income tax (benefit) expense | (861) | 2,009 | |
Interest expense | 6,989 | 3,486 | |
Gain on interest rate swap derivatives | 82 | ||
Other income (expenses), net | 174 | (243) | |
Operating Income | 3,115 | 8,414 | |
Depreciation and amortization and accretion of asset retirement obligations | 11,925 | 11,902 | |
Amortization of actuarial losses | 338 | 337 | |
Equity-based compensation, exclusive of restructuring charges | 5,530 | 1,225 | |
Restructuring charges | 2,207 | 633 | |
Adjusted EBITDA | [1],[2] | $ 23,115 | $ 22,511 |
[1] | Adjusted EBITDA (a non-GAAP measure) is used by the Company's CODMs to evaluate performance. Adjusted EBITDA, as defined by the Company, is 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. | ||
[2] | In the first quarter of 2016, the Company refined its methodology for allocating certain operating costs to the segments, resulting in immaterial changes to previously reported segment Adjusted EBITDA amounts for the three months ended March 31, 2015. |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 06, 2015USD ($)shares | Jan. 02, 2015USD ($) | Apr. 30, 2013USD ($) | Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($) |
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit borrowing capacity | $ 425,000,000 | ||||
Amount outstanding retired | 311,000,000 | ||||
Principal payments on senior secured term loans | $ 1,938,000 | ||||
Line of credit, interest coverage ratio, minimum | item | 3.25 | ||||
Line of credit, leverage ratio | item | 3.86 | ||||
Line of credit, interest coverage ratio | item | 6.74 | ||||
Gain on interest rate swap derivatives | 82,000 | ||||
Payment of financing costs | 861,000 | ||||
Granted during the period, shares | shares | 5,500,000 | ||||
Debt Instrument, Unamortized Discount | $ 24,800,000 | ||||
Proceeds from Issuance of Warrants | 23,500,000 | ||||
Portion of Debt Discount offset from proceeds allocated to debt | 1,300,000 | ||||
Debt discount, amount offset from proceeds | 1,500,000 | ||||
Amortization of debt discounts and issuance costs | $ 1,099,000 | 413,000 | |||
Patronage credits | 300,000 | $ 400,000 | |||
Maturities of long-term debt, thereafter | 150,000,000 | ||||
Future minimum lease payments | 10,400,000 | ||||
Future minimum lease payments, remainder of 2016 | 2,600,000 | ||||
Future minimum lease payments, 2017 | 500,000 | ||||
Future minimum lease payments, 2018 | 400,000 | ||||
Future minimum lease payments, 2019 | 400,000 | ||||
Future minimum lease payments, 2020 | 400,000 | ||||
Future minimum lease payments, thereafter | $ 6,100,000 | ||||
January 1, 2016 Through December 31, 2016 | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit, leverage ratio, maximum | item | 4.75 | ||||
January 1, 2017 Through December 31, 2017 | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit, leverage ratio, maximum | item | 4.50 | ||||
January 1, 2018 Through December 31, 2018 | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit, leverage ratio, maximum | item | 4.25 | ||||
After December 31, 2018 | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit, leverage ratio, maximum | item | 4 | ||||
Vehicles [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Historical cost | $ 2,723,000 | ||||
Accumulated amortization | (1,441,000) | ||||
Software Licenses [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Historical cost | 5,200,000 | ||||
Accumulated amortization | (3,294,000) | ||||
Telephony Equipment [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Historical cost | 8,871,000 | ||||
Accumulated amortization | (111,000) | ||||
Senior Secured Five Year Amortizing Term Loan [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit current borrowing capacity | $ 100,000,000 | ||||
Term of loan | 5 years | ||||
Senior Secured Six Year Amortizing Term Loan [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit current borrowing capacity | $ 275,000,000 | ||||
Senior Secured Revolving Credit Facility [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit current borrowing capacity | $ 50,000,000 | ||||
Term of loan | 5 years | ||||
Revolver [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of Credit Facility, Amount Outstanding | 0 | ||||
Amount outstanding, credit facility | $ 0 | ||||
Basis spread on variable rate | 3.00% | ||||
Term Loan A [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Term Loan A [Member] | September 30, 2014 Through December 31, 2016 [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Quarterly payments per annum | 1.25% | ||||
Term Loan A [Member] | After December 31, 2016 [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Quarterly payments per annum | 2.50% | ||||
Term Loan B [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Quarterly payments per annum | 1.00% | ||||
Term Loan A, B And C [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Principal payments on senior secured term loans | 40,000,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.08% | ||||
Debt issuance costs | $ 900,000 | ||||
Maturities of long-term debt, remainder of 2016 | $ 8,000,000 | ||||
Maturities of long-term debt, 2017 | 13,000,000 | ||||
Maturities of long-term debt, 2018 | 70,800,000 | ||||
Maturities of long-term debt, 2019 | $ 256,500,000 | ||||
Term Loan C [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Line of credit current borrowing capacity | $ 28,000,000 | ||||
Basis spread on variable rate | 3.25% | ||||
Quarterly payments per annum | 1.00% | ||||
Unsecured Debt [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 12.55% | ||||
Debt Instrument, Face Amount | 150,000,000 | ||||
Payment of financing costs | 7,100,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||
Debt issuance costs | $ 6,000,000 | ||||
Minimum [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Term of capital leases | 4 years | ||||
Maximum [Member] | |||||
Schedule of Long Term Debt and Capital Lease Obligations [Line Items] | |||||
Term of capital leases | 5 years |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Less: current portion of long term debt | $ 13,992 | $ 10,400 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 461,628 | 456,300 |
Long-term Debt [Member] | ||
Credit facility | 348,415 | 348,415 |
8% Notes | 150,000 | 150,000 |
Capital lease obligations | 10,419 | 2,597 |
Long-term debt | 508,834 | 501,012 |
Less: current portion of long term debt | 13,992 | 10,400 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | 494,842 | 490,612 |
Unamortized Discount and Debt Issuance Costs [Member] | ||
Credit facility | 4,343 | 4,705 |
8% Notes | 28,871 | 29,607 |
Long-term debt | 33,214 | 34,312 |
Long-term debt, net of unamortized discount and debt issuance costs, excluding current portion | $ 33,214 | $ 34,312 |
Long-Term Debt (Schedule of Cap
Long-Term Debt (Schedule of Capitalized Lease Assets) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Vehicles [Member] | |
Historical cost | $ 2,723 |
Accumulated amortization | (1,441) |
Software Licenses [Member] | |
Historical cost | 5,200 |
Accumulated amortization | (3,294) |
Telephony Equipment [Member] | |
Historical cost | 8,871 |
Accumulated amortization | $ (111) |
Supplementary Disclosures Of 45
Supplementary Disclosures Of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplementary Disclosures Of Cash Flow Information [Abstract] | ||
Interest (net of amounts capitalized) | $ 5,109 | $ 2,533 |
Income taxes | 114 | 172 |
Additions to property, plant and equipment included in accounts payable | 6,328 | 3,800 |
Obligations incurred under capital leases | 7,936 | |
Cash received from patronage credits | 800 | |
Interest capitalized | $ 400 | $ 300 |
Fair Value Of Financial Instr46
Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost Method Investments | $ 1,245 | $ 1,180 |
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 | $ 1,100 | $ 1,100 |
Fair Value Of Financial Instr47
Fair Value Of Financial Instruments (Summary Of Financial Assets Measured At Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 20,501 | $ 8,801 |
Total marketable securities | 52,379 | 88,811 |
Total financial assets | 72,880 | 97,612 |
Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 12,266 | 6,746 |
Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 8,035 | 1,000 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,617 | 8,684 |
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 | 21,661 | 35,155 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 200 | 1,055 |
Total marketable securities | 24,101 | 44,972 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 12,266 | 6,746 |
Total financial assets | 12,266 | 6,746 |
Level 1 [Member] | Money Market Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 12,266 | 6,746 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 8,235 | 2,055 |
Total marketable securities | 52,379 | 88,811 |
Total financial assets | 60,614 | 90,866 |
Level 2 [Member] | Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 8,035 | 1,000 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total marketable securities | 6,617 | 8,684 |
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 | 21,661 | 35,155 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 200 | 1,055 |
Total marketable securities | $ 24,101 | $ 44,972 |
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 | ||
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] | Commercial Paper ST [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
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] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | ||
Total marketable securities |
Fair Value Of Financial Instr48
Fair Value Of Financial Instruments (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital lease obligations | $ 10,419 | $ 2,597 |
Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Capital lease obligations | 10,419 | 2,597 |
Term Loan A, B And C [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 344,072 | 343,710 |
Term Loan A, B And C [Member] | Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility | 292,733 | 298,400 |
Unsecured Debt [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
8% Notes | 121,129 | 120,393 |
Unsecured Debt [Member] | Fair Value (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
8% Notes | $ 132,494 | $ 132,028 |
Equity (Summary Of Activity And
Equity (Summary Of Activity And Status Of Equity) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | $ 132,331 | |
Net (Loss) Income Attributable to Lumos Networks Corp. | (2,894) | $ 2,724 |
Other comprehensive income, net of tax | 231 | $ 213 |
Equity-based compensation expense | 5,486 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ (2,005) | |
Stock options exercises, shares | 1 | |
Stock option exercises | $ 11 | |
Net income attributable to noncontrolling interests | 55 | |
Balance, March 31, 2016 | 133,215 | |
Common Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | $ 230 | |
Balance, December 31, 2015, shares | 23,005 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ 5 | |
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 | 478 | |
Stock options exercises, shares | 1 | |
Balance, March 31, 2016 | $ 235 | |
Balance, March 31, 2016, shares | 23,484 | |
Treasury Stock [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | $ (103) | |
Balance, December 31, 2015, shares | 13 | |
Net (Loss) Income Attributable to Lumos Networks Corp. | ||
Other comprehensive income, net of tax | ||
Equity-based compensation expense | ||
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | $ (2,397) | |
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 | 204 | |
Stock option exercises | ||
Net income attributable to noncontrolling interests | ||
Balance, March 31, 2016 | $ (2,500) | |
Balance, March 31, 2016, shares | 217 | |
Additional Paid-In Capital [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | $ 171,746 | |
Equity-based compensation expense | 5,486 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | 387 | |
Stock option exercises | 11 | |
Balance, March 31, 2016 | 177,630 | |
Accumulated Deficit [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | (28,541) | |
Net (Loss) Income Attributable to Lumos Networks Corp. | (2,894) | |
Balance, March 31, 2016 | (31,435) | |
Accumulated Other Comprehensive Loss [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | (11,940) | |
Other comprehensive income, net of tax | 231 | |
Balance, March 31, 2016 | (11,709) | |
Total Lumos Networks Corp. Stockholders' Equity [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | 131,392 | |
Net (Loss) Income Attributable to Lumos Networks Corp. | (2,894) | |
Other comprehensive income, net of tax | 231 | |
Equity-based compensation expense | 5,486 | |
Restricted shares issued, shares issued through the employee stock purchase plan and 401(k) matching contributions (net of shares reacquired through restricted stock forfeits) | (2,005) | |
Stock option exercises | 11 | |
Balance, March 31, 2016 | 132,221 | |
Noncontrolling Interests [Member] | ||
Stockholders Equity [Line Items] | ||
Balance, December 31, 2015 | 939 | |
Net income attributable to noncontrolling interests | 55 | |
Balance, March 31, 2016 | $ 994 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded from computation of diluted earnings per common share | 871,370 | 429,222 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded from computation of diluted earnings per common share | 356,217 | 179,000 |
Warrants and Rights Subject to Mandatory Redemption [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Excluded from computation of diluted earnings per common share | 5,500,000 |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule Of Computation Of Basic And Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings (Loss) Per Share [Abstract] | ||
Net (loss) income attributable to Lumos Networks Corp. | $ (2,894) | $ 2,724 |
Less: net income attributable to Lumos Networks Corp. allocable to participating securities | (75) | |
Numerator for basic and diluted earnings per common share | $ (2,894) | $ 2,649 |
Weighted average basic shares outstanding | 22,850 | 22,599 |
Less: weighted average participating securities and nonvested performance-based restricted shares | (795) | (646) |
Denominator for basic earnings per common share | 22,055 | 21,953 |
Plus: potentially dilutive stock options | 446 | |
Denominator for diluted earnings per common share | 22,055 | 22,399 |
Basic and diluted (loss) earnings per share | $ (0.13) | $ 0.12 |
Stock Options, Restricted Sto52
Stock Options, Restricted Stock and Stock Warrants (Narrative) (Details) - USD ($) $ in Millions | Aug. 06, 2015 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock options issued | 0 | |
Number of shares issued during the period | 138,474 | |
Stock plan vesting description | 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 | |
Total fair value of options vested | $ 0.3 | |
Shares available for employee stock purchase plan | 100,000 | |
Shares price percentage | 85.00% | |
Shares issued under the employee stock purchase plan | 1,636 | |
Warrants issued, shares | 5,500,000 | |
Proceeds from Issuance of Warrants | $ 23.5 | |
Portion of Debt Discount offset from proceeds allocated to debt | $ 1.3 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1.3 | |
Unrecognized compensation cost recognition period, in years | 2 years 3 months 18 days | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares issued during the period | 138,474 | |
Unrecognized compensation cost | $ 5.8 | |
Unrecognized compensation cost recognition period, in years | 1 year 10 months 24 days | |
Stock Warrants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Warrants issued, shares | ||
Equity And Cash Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares of common stock available for awards | 5,500,000 | |
Securities remained available for issuance | 889,011 | |
Unsecured Debt [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8.00% |
Stock Options, Restricted Sto53
Stock Options, Restricted Stock and Stock Warrants (Summary Of Stock Options Activity) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Stock Plans [Abstract] | |
Stock options outstanding at December 31, 2015, Shares | 2,182,000 |
Stock options outstanding at December 31, 2015, Weighted-Average Exercise Price per Share | $ / shares | $ 12.57 |
Granted during the period, Shares | 0 |
Exercised during the period, Shares | (1,000) |
Exercised during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 9.32 |
Forfeited during the period, Shares | (32,000) |
Forfeited during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 14.12 |
Expired during the period, Shares | (102,000) |
Expired during the period, Weighted-Average Exercise Price per Share | $ / shares | $ 13.38 |
Stock options outstanding at March 31, 2016, Shares | 2,047,000 |
Stock options outstanding at March 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.51 |
Stock options outstanding at March 31, 2016, Weighted-Average Remaining Contractual Term, in years | 5 years 3 months 18 days |
Stock options outstanding a March 31, 2016, Aggregate Intrinsic Value | $ | $ 3,187 |
Stock options exercisable at March 31, 2016, Shares | 1,513,000 |
Stock options exercisable at March 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.35 |
Stock options exercisable at March 31, 2016, Weighted-Average Remaining Contractual Term, in years | 4 years 8 months 12 days |
Stock options exercisable at March 31, 2016, Aggregate Intrinsic Value | $ | $ 2,417 |
Total stock options outstanding, vested and expected to vest at March 31, 2016, Shares | 2,009,000 |
Total stock options outstanding, vested and expected to vest at March 31, 2016, Weighted-Average Exercise Price per Share | $ / shares | $ 12.52 |
Total stock options outstanding, vested and expected to vest at March 31, 2016, Aggregate Intrinsic Value | $ | $ 3,109 |
Stock Options, Restricted Sto54
Stock Options, Restricted Stock and Stock Warrants (Summary Of Restricted Stock Awards Activity) (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted during the period, Shares | shares | 138,474 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock outstanding at December 31, 2015, Shares | shares | 861,000 |
Stock outstanding at December 31, 2015, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 14.37 |
Granted during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 11.68 |
Vested during the period, Shares | shares | (201,000) |
Vested during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 11.98 |
Forfeited during the period, Shares | shares | (71,000) |
Forfeited during the period, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 16.78 |
Restricted stock outstanding at March 31, 2016, Shares | shares | 728,000 |
Stock outstanding at March 31, 2016, Weighted Average Grant Date Fair Value per Share | $ / shares | $ 14.28 |
Stock Options, Restricted Sto55
Stock Options, Restricted Stock and Stock Warrants (Summary of Stock Warrant Activity) (Details) - $ / shares | Aug. 06, 2015 | Mar. 31, 2016 |
Granted during the period, shares | 5,500,000 | |
Stock Warrants [Member] | ||
Stock warrants oustanding at December 31, 2015, Shares | 5,500,000 | |
Stock warrants outstanding at December 31, 2015, weighted average exercise price per share | $ 13.99 | |
Granted during the period, shares | ||
Exercised during the period, shares | ||
Expired during the period, shares | ||
Granted during the period, weighted average exercise price | ||
Exercised during the period, Weighted Average Exercise Price Per Share | ||
Expired during the period, weighted average exercise price per share | ||
Stock warrants outstanding at March 31, 2016, Shares | 5,500,000 | |
Stock warrants outstanding at March 31, 2016, weighted average exercise price | $ 13.99 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes [Abstract] | ||
Income Tax Expense | $ (861) | $ 2,009 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transactions [Abstract] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.3 | $ 0.2 |
Related Party Transaction, Other Revenues from Transactions with Related Party | 1.2 | 1.2 |
Due from Related Party | $ 0.4 | $ 0.4 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule Of Restructuring Costs By Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Total Restructuring charges | $ 2,207 | $ 633 |
Data [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 1,605 | |
Total Restructuring charges | 1,605 | |
R&SB [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 497 | |
Total Restructuring charges | 497 | |
RLEC Access [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and termination benefits | 105 | |
Total Restructuring charges | $ 105 |
Restructuring Charges (Summary
Restructuring Charges (Summary Of Restructuring Liability Balance) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Additions | $ 2,207 |
Payments | (891) |
Ending balance at March 31, 2016 | 1,316 |
Employee Severance And Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additions | 2,207 |
Payments | (891) |
Ending balance at March 31, 2016 | $ 1,316 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Mar. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
Purchase commitments relating to capital expenditures | $ 6.3 |