Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS CO/VA/ | |
Entity Central Index Key | 354,963 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,198,020 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 92,137 | $ 68,917 |
Accounts receivable, net | 29,806 | 30,371 |
Income taxes receivable | 0 | 14,752 |
Materials and supplies | 5,708 | 8,794 |
Prepaid expenses and other | 5,577 | 4,279 |
Deferred income taxes | 1,174 | 1,211 |
Total current assets | 134,402 | 128,324 |
Investments, including $2,752 and $2,661 carried at fair value | 10,526 | 10,089 |
Property, plant and equipment, net | 402,877 | 405,907 |
Other Assets | ||
Intangible assets, net | 67,535 | 68,260 |
Deferred charges and other assets, net | 6,917 | 6,662 |
Other assets, net | 74,452 | 74,922 |
Total assets | 622,257 | 619,242 |
Current Liabilities | ||
Current maturities of long-term debt | 23,000 | 23,000 |
Accounts payable | 9,410 | 11,151 |
Advanced billings and customer deposits | 11,373 | 12,375 |
Accrued compensation | 3,480 | 5,466 |
Income taxes payable | 499 | 0 |
Accrued liabilities and other | 7,926 | 7,162 |
Total current liabilities | 55,688 | 59,154 |
Long-term debt, less current maturities | 189,750 | 201,250 |
Other Long-Term Liabilities | ||
Deferred income taxes | 72,241 | 76,777 |
Deferred lease payable | 7,686 | 7,180 |
Asset retirement obligations | 7,522 | 6,928 |
Other liabilities | 9,653 | 9,607 |
Total other long-term liabilities | $ 97,102 | $ 100,492 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Common stock | $ 30,904 | $ 29,712 |
Accumulated other comprehensive income | 541 | 1,122 |
Retained earnings | 248,272 | 227,512 |
Total shareholders' equity | 279,717 | 258,346 |
Total liabilities and shareholders' equity | $ 622,257 | $ 619,242 |
UNAUDITED CONSOLIDATED BALANCE3
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Investments at fair value | $ 2,752 | $ 2,661 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||
Operating revenues | $ 85,701 | $ 81,416 | $ 169,989 | $ 161,868 |
Operating expenses: | ||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,280 | 32,403 | 60,970 | 64,639 |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 19,008 | 16,625 | 37,742 | 33,773 |
Depreciation and amortization | 17,663 | 16,595 | 34,001 | 31,983 |
Total operating expenses | 66,951 | 65,623 | 132,713 | 130,395 |
Operating income | 18,750 | 15,793 | 37,276 | 31,473 |
Other income (expense): | ||||
Interest expense | (1,940) | (2,065) | (3,855) | (4,112) |
Gain on investments, net | 98 | 114 | 200 | 96 |
Non-operating income, net | 442 | 459 | 874 | 1,086 |
Income before income taxes | 17,350 | 14,301 | 34,495 | 28,543 |
Income tax expense | 6,876 | 5,686 | 13,735 | 11,312 |
Net income | 10,474 | 8,615 | 20,760 | 17,231 |
Other comprehensive income: | ||||
Unrealized gain (loss) on interest rate hedge, net of tax | 326 | (913) | (581) | (1,260) |
Comprehensive income | $ 10,800 | $ 7,702 | $ 20,179 | $ 15,971 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.36 | $ 0.86 | $ 0.72 |
Diluted (in dollars per share) | $ 0.43 | $ 0.35 | $ 0.85 | $ 0.71 |
Weighted average shares outstanding, basic (in shares) | 24,190 | 24,102 | 24,172 | 24,080 |
Weighted average shares outstanding, diluted (in shares) | 24,502 | 24,320 | 24,463 | 24,271 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2013 | $ 26,759 | $ 204,962 | $ 2,594 | $ 234,315 |
Balance (in shares) at Dec. 31, 2013 | 24,040 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 33,883 | 0 | 33,883 |
Other comprehensive loss, net of tax | 0 | 0 | (1,472) | (1,472) |
Dividends declared | 0 | (11,333) | 0 | (11,333) |
Dividends reinvested in common stock | $ 572 | 0 | 0 | 572 |
Dividends reinvested in common stock (in shares) | 19 | |||
Stock based compensation | $ 2,624 | 0 | 0 | 2,624 |
Stock options exercised | $ 1,141 | 0 | 0 | 1,141 |
Stock options exercised (in shares) | 51 | |||
Common stock issued for share awards | $ 0 | 0 | 0 | 0 |
Common stock issued for share awards (in shares) | 81 | |||
Common stock issued | $ 6 | 0 | 0 | 6 |
Common stock issued (in shares) | 1 | |||
Common stock repurchased | $ (1,785) | 0 | 0 | (1,785) |
Common stock repurchased (in shares) | (60) | |||
Net excess tax benefit from stock options exercised | $ 395 | 0 | 0 | 395 |
Balance at Dec. 31, 2014 | $ 29,712 | 227,512 | 1,122 | 258,346 |
Balance (in shares) at Dec. 31, 2014 | 24,132 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | $ 0 | 20,760 | 0 | 20,760 |
Other comprehensive loss, net of tax | 0 | 0 | (581) | (581) |
Stock based compensation | 1,662 | 0 | 0 | 1,662 |
Stock options exercised | $ 525 | 0 | 0 | 525 |
Stock options exercised (in shares) | 23 | |||
Common stock issued for share awards | $ 0 | 0 | 0 | 0 |
Common stock issued for share awards (in shares) | 87 | |||
Common stock issued | $ 5 | 0 | 0 | 5 |
Common stock issued (in shares) | 1 | |||
Common stock repurchased | $ (1,450) | 0 | 0 | (1,450) |
Common stock repurchased (in shares) | (45) | |||
Net excess tax benefit from stock options exercised | $ 450 | 0 | 0 | 450 |
Balance at Jun. 30, 2015 | $ 30,904 | $ 248,272 | $ 541 | $ 279,717 |
Balance (in shares) at Jun. 30, 2015 | 24,198 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2014$ / shares | |
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |
Dividends declared per share (in dollars per share) | $ 0.47 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 20,760 | $ 17,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 33,189 | 30,325 |
Amortization | 812 | 1,658 |
Provision for bad debt | 905 | 550 |
Stock based compensation expense | 1,430 | 1,560 |
Excess tax benefits on stock awards | (450) | (394) |
Deferred income taxes | (3,656) | (4,983) |
Net (gain) loss on disposal of equipment | 227 | (313) |
Unrealized (gain) loss on investments | (54) | (74) |
Net gains from patronage and equity investments | (385) | (289) |
Amortization of long term debt issuance costs | 289 | 300 |
Other | 647 | 133 |
(Increase) decrease in: | ||
Accounts receivable | (339) | (1,570) |
Materials and supplies | (414) | 3,120 |
Income taxes receivable | 14,752 | 17,157 |
Other assets | (3,421) | 950 |
Increase (decrease) in: | ||
Accounts payable | (2,911) | 2,367 |
Income taxes payable | 499 | 0 |
Deferred lease payable | 506 | 502 |
Other deferrals and accruals | (2,116) | (1,654) |
Net cash provided by operating activities | 60,270 | 66,576 |
Cash Flows From Investing Activities | ||
Acquisition of property, plant and equipment | (25,135) | (32,804) |
Proceeds from sale of equipment | 52 | 223 |
Cash distributions from investments | 3 | 27 |
Net cash used in investing activities | (25,080) | (32,554) |
Cash Flows From Financing Activities | ||
Principal payments on long-term debt | (11,500) | 0 |
Excess tax benefits on stock awards | 450 | 394 |
Repurchases of stock | (1,450) | (1,771) |
Proceeds from issuances of stock | 530 | 1,124 |
Net cash used in financing activities | (11,970) | (253) |
Net increase in cash and cash equivalents | 23,220 | 33,769 |
Cash and cash equivalents: | ||
Beginning | 68,917 | 38,316 |
Ending | 92,137 | 72,085 |
Cash payments for: | ||
Interest | 3,782 | 3,930 |
Income taxes paid (refunded) | $ 2,139 | $ (580) |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Other cash flow information: | |
Capital expenditures | $ 1.2 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The interim consolidated financial statements of Shenandoah Telecommunications Company and Subsidiaries (collectively, the “Company”) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been reflected therein. All such adjustments were of a normal and recurring nature. These statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The balance sheet information at December 31, 2014 was derived from the audited December 31, 2014 consolidated balance sheet. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2. Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): June 30, 2015 December 31, 2014 Plant in service $ 692,038 $ 675,321 Plant under construction 22,550 18,078 714,588 693,399 Less accumulated amortization and depreciation 311,711 287,492 Net property, plant and equipment $ 402,877 $ 405,907 |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings per share [Abstract] | |
Earnings per share | 3. Earnings per share Basic net income per share was computed on the weighted average number of shares outstanding. Diluted net income per share was computed under the treasury stock method, assuming the conversion as of the beginning of the period, for all dilutive stock options. Of the 696 thousand and 694 thousand shares and options outstanding at , respectively, 79 thousand and zero were anti-dilutive, respectively. These shares and options have been excluded from the computations of diluted earnings per share for their respective period. There were no adjustments to net income for either period. |
Investments Carried at Fair Val
Investments Carried at Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Investments Carried at Fair Value [Abstract] | |
Investments Carried at Fair Value | 4. Investments Carried at Fair Value Investments include $ million and $2.7 million of investments carried at fair value as of June 30, 2015 and December 31, 2014, respectively, consisting of equity, bond and money market mutual funds. These investments were acquired under a rabbi trust arrangement related to the Company’s nonqualified Supplemental Executive Retirement Plan (the “SERP”). The Company purchases investments in the trust to mirror the investment elections of participants in the SERP; gains and losses on the investments in the trust are reflected as increases or decreases in the liability owed to the participants. During the six months ended June 30, 2015, the Company recognized $37 thousand in dividend and interest income from investments, and recorded net unrealized gains of $ thousand on these investments. Fair values for these investments held under the rabbi trust were determined by Level 1 quoted market prices for the underlying mutual funds. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Financial Instruments [Abstract] | |
Financial Instruments | 5. Financial Instruments Financial instruments on the consolidated balance sheets that approximate fair value include: cash and cash equivalents, receivables, investments carried at fair value, payables, accrued liabilities, interest rate swaps and variable rate long-term debt. |
Derivative Instruments, Hedging
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income | 6. Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income The Company’s objectives in using interest rate derivatives are to add stability to cash flows and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps (both those designated as cash flow hedges as well as those not designated as cash flow hedges) involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company entered into a pay-fixed, receive-variable interest rate swap of $174.6 million of notional principal in September 2012. This interest rate swap was designated as a cash flow hedge. The total outstanding notional amount of the cash flow hedge million as of June 30, 2015. The outstanding notional amount decreases as the Company makes scheduled principal payments on the debt. The effective portion of changes in the fair value of interest rate swaps designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses its derivatives to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings through interest expense. No hedge ineffectiveness was recognized during any of the periods presented. Amounts reported in accumulated other comprehensive income related to the interest rate swap designated and that qualifies as a cash flow hedge are reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of June 30, 2015, the Company estimates that $ million will be reclassified as an to interest expense during the next twelve months due to the interest rate swap since the hedge interest rate exceeds the variable interest rate on the debt. The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheet as of June 30, 2015 and December 31, 2014 (in thousands): Derivatives Fair Value as of Balance Sheet June 30, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (1,167 ) $ (1,309 ) Deferred charges and other assets, net 2,065 3,180 Total derivatives designated as hedging instruments $ 898 $ 1,871 The fair value of interest rate swaps is determined using a pricing model with inputs that are observable in the market (level 2 fair value inputs). The table below presents change in accumulated other comprehensive income by component for the six months ended June 30, 2015 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income Balance as of December 31, 2014 $ 1,871 $ (749 ) $ 1,122 Other comprehensive loss before reclassifications (1,771 ) 711 (1,060 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 798 (319 ) 479 Net current period other comprehensive loss (973 ) 392 (581 ) Balance as of June 30, 2015 $ 898 $ (357 ) $ 541 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | 7. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers. The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Cable, and (3) Wireline. A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company. The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate. This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers. The Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia. The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia. The segment also provides video services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of Pennsylvania. Three months ended June 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 48,749 $ 22,117 $ 4,889 $ - $ - $ 75,755 Other 2,848 1,850 5,248 - - 9,946 Total external revenues 51,597 23,967 10,137 - - 85,701 Internal revenues 1,105 186 6,326 - (7,617 ) - Total operating revenues 52,702 24,153 16,463 - (7,617 ) 85,701 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 15,903 13,635 7,677 (16 ) (6,919 ) 30,280 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,917 5,084 1,736 3,969 (698 ) 19,008 Depreciation and amortization 8,612 5,859 3,083 109 - 17,663 Total operating expenses 33,432 24,578 12,496 4,062 (7,617 ) 66,951 Operating income (loss) $ 19,270 $ (425 ) $ 3,967 $ (4,062 ) $ - $ 18,750 Three months ended June 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 47,868 $ 18,981 $ 4,795 $ - $ - $ 71,644 Other 2,813 1,823 5,136 - - 9,772 Total external revenues 50,681 20,804 9,931 - - 81,416 Internal revenues 1,094 33 5,713 - (6,840 ) - Total operating revenues 51,775 20,837 15,644 - (6,840 ) 81,416 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 18,476 12,421 7,737 - (6,231 ) 32,403 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 7,657 4,735 1,493 3,349 (609 ) 16,625 Depreciation and amortization 8,071 5,766 2,653 105 - 16,595 Total operating expenses 34,204 22,922 11,883 3,454 (6,840 ) 65,623 Operating income (loss) 17,571 (2,085 ) 3,761 (3,454 ) - 15,793 Six months ended June 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 97,124 $ 43,518 $ 9,639 $ - $ - $ 150,281 Other 5,878 3,613 10,217 - - 19,708 Total external revenues 103,002 47,131 19,856 - - 169,989 Internal revenues 2,209 334 12,192 - (14,735 ) - Total operating revenues 105,211 47,465 32,048 - (14,735 ) 169,989 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 32,090 27,253 15,011 - (13,384 ) 60,970 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 17,969 9,976 3,234 7,914 (1,351 ) 37,742 Depreciation and amortization 16,444 11,338 6,007 212 - 34,001 Total operating expenses 66,503 48,567 24,252 8,126 (14,735 ) 132,713 Operating income (loss) 38,708 (1,102 ) 7,796 (8,126 ) - 37,276 Six months ended June 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 95,100 $ 37,855 $ 9,515 $ - $ - $ 142,470 Other 5,569 3,403 10,426 - - 19,398 Total external revenues 100,669 41,258 19,941 - - 161,868 Internal revenues 2,184 59 11,478 - (13,721 ) - Total operating revenues 102,853 41,317 31,419 - (13,721 ) 161,868 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 37,132 24,811 15,219 - (12,523 ) 64,639 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 16,089 9,381 2,737 6,764 (1,198 ) 33,773 Depreciation and amortization 15,268 11,170 5,350 195 - 31,983 Total operating expenses 68,489 45,362 23,306 6,959 (13,721 ) 130,395 Operating income (loss) 34,364 (4,045 ) 8,113 (6,959 ) - 31,473 (1) Prior year service and other revenue amounts have been recast to conform to the current year presentation of video and internet equipment revenues being included in service revenue rather than other revenue. A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended June 30, (in thousands) 2015 2014 Total consolidated operating income $ 18,750 $ 15,793 Interest expense (1,940 ) (2,065 ) Non-operating income, net 540 573 Income before taxes $ 17,350 $ 14,301 Six Months Ended June 30, 2015 2014 Total consolidated operating income $ 37,276 $ 31,473 Interest expense (3,855 ) (4,112 ) Non-operating income, net 1,074 1,182 Income before taxes $ 34,495 $ 28,543 The Company’s assets by segment are as follows: (in thousands) June 30, 2015 December 31, 2014 Wireless $ 227,089 $ 218,887 Cable 208,584 201,232 Wireline 98,003 98,081 Other 445,039 446,028 Combined totals 978,715 964,228 Inter-segment eliminations (356,458 ) (344,986 ) Consolidated totals $ 622,257 $ 619,242 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes The Company files U.S. federal income tax returns and various state and local income tax returns. Years prior to 2011 are no longer subject to examination. The Company is not subject to any state or federal income tax audits as of June 30, 2015. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): June 30, 2015 December 31, 2014 Plant in service $ 692,038 $ 675,321 Plant under construction 22,550 18,078 714,588 693,399 Less accumulated amortization and depreciation 311,711 287,492 Net property, plant and equipment $ 402,877 $ 405,907 |
Derivative Instruments, Hedgi18
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Derivative Financial Instrument as Well as its Classification on the Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instrument as well as its classification on the consolidated balance sheet as of June 30, 2015 and December 31, 2014 (in thousands): Derivatives Fair Value as of Balance Sheet June 30, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (1,167 ) $ (1,309 ) Deferred charges and other assets, net 2,065 3,180 Total derivatives designated as hedging instruments $ 898 $ 1,871 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents change in accumulated other comprehensive income by component for the six months ended June 30, 2015 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income Balance as of December 31, 2014 $ 1,871 $ (749 ) $ 1,122 Other comprehensive loss before reclassifications (1,771 ) 711 (1,060 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 798 (319 ) 479 Net current period other comprehensive loss (973 ) 392 (581 ) Balance as of June 30, 2015 $ 898 $ (357 ) $ 541 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Selected Financial Data for Segments | The segment also provides video services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of Pennsylvania. Three months ended June 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 48,749 $ 22,117 $ 4,889 $ - $ - $ 75,755 Other 2,848 1,850 5,248 - - 9,946 Total external revenues 51,597 23,967 10,137 - - 85,701 Internal revenues 1,105 186 6,326 - (7,617 ) - Total operating revenues 52,702 24,153 16,463 - (7,617 ) 85,701 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 15,903 13,635 7,677 (16 ) (6,919 ) 30,280 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 8,917 5,084 1,736 3,969 (698 ) 19,008 Depreciation and amortization 8,612 5,859 3,083 109 - 17,663 Total operating expenses 33,432 24,578 12,496 4,062 (7,617 ) 66,951 Operating income (loss) $ 19,270 $ (425 ) $ 3,967 $ (4,062 ) $ - $ 18,750 Three months ended June 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 47,868 $ 18,981 $ 4,795 $ - $ - $ 71,644 Other 2,813 1,823 5,136 - - 9,772 Total external revenues 50,681 20,804 9,931 - - 81,416 Internal revenues 1,094 33 5,713 - (6,840 ) - Total operating revenues 51,775 20,837 15,644 - (6,840 ) 81,416 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 18,476 12,421 7,737 - (6,231 ) 32,403 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 7,657 4,735 1,493 3,349 (609 ) 16,625 Depreciation and amortization 8,071 5,766 2,653 105 - 16,595 Total operating expenses 34,204 22,922 11,883 3,454 (6,840 ) 65,623 Operating income (loss) 17,571 (2,085 ) 3,761 (3,454 ) - 15,793 Six months ended June 30, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 97,124 $ 43,518 $ 9,639 $ - $ - $ 150,281 Other 5,878 3,613 10,217 - - 19,708 Total external revenues 103,002 47,131 19,856 - - 169,989 Internal revenues 2,209 334 12,192 - (14,735 ) - Total operating revenues 105,211 47,465 32,048 - (14,735 ) 169,989 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 32,090 27,253 15,011 - (13,384 ) 60,970 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 17,969 9,976 3,234 7,914 (1,351 ) 37,742 Depreciation and amortization 16,444 11,338 6,007 212 - 34,001 Total operating expenses 66,503 48,567 24,252 8,126 (14,735 ) 132,713 Operating income (loss) 38,708 (1,102 ) 7,796 (8,126 ) - 37,276 Six months ended June 30, 2014 (in thousands) Wireless Cable (1) Wireline (1) Other Eliminations Consolidated Totals External revenues Service revenues $ 95,100 $ 37,855 $ 9,515 $ - $ - $ 142,470 Other 5,569 3,403 10,426 - - 19,398 Total external revenues 100,669 41,258 19,941 - - 161,868 Internal revenues 2,184 59 11,478 - (13,721 ) - Total operating revenues 102,853 41,317 31,419 - (13,721 ) 161,868 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 37,132 24,811 15,219 - (12,523 ) 64,639 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 16,089 9,381 2,737 6,764 (1,198 ) 33,773 Depreciation and amortization 15,268 11,170 5,350 195 - 31,983 Total operating expenses 68,489 45,362 23,306 6,959 (13,721 ) 130,395 Operating income (loss) 34,364 (4,045 ) 8,113 (6,959 ) - 31,473 (1) Prior year service and other revenue amounts have been recast to conform to the current year presentation of video and internet equipment revenues being included in service revenue rather than other revenue. |
Reconciliation of Income from Continuing Operations from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended June 30, (in thousands) 2015 2014 Total consolidated operating income $ 18,750 $ 15,793 Interest expense (1,940 ) (2,065 ) Non-operating income, net 540 573 Income before taxes $ 17,350 $ 14,301 Six Months Ended June 30, 2015 2014 Total consolidated operating income $ 37,276 $ 31,473 Interest expense (3,855 ) (4,112 ) Non-operating income, net 1,074 1,182 Income before taxes $ 34,495 $ 28,543 |
Assets by Segment | The Company’s assets by segment are as follows: (in thousands) June 30, 2015 December 31, 2014 Wireless $ 227,089 $ 218,887 Cable 208,584 201,232 Wireline 98,003 98,081 Other 445,039 446,028 Combined totals 978,715 964,228 Inter-segment eliminations (356,458 ) (344,986 ) Consolidated totals $ 622,257 $ 619,242 |
Property, Plant and Equipment20
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 714,588 | $ 693,399 |
Less accumulated amortization and depreciation | 311,711 | 287,492 |
Net property, plant and equipment | 402,877 | 405,907 |
Plant in Service [Member] | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 692,038 | 675,321 |
Plant under Construction [Member] | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 22,550 | $ 18,078 |
Earnings per share (Details)
Earnings per share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per share [Abstract] | ||
Shares and options outstanding (in shares) | 696 | 694 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share (in shares) | 79 | 0 |
Investments Carried at Fair V22
Investments Carried at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Investments Carried at Fair Value [Abstract] | |||
Investments at fair value | $ 2,752 | $ 2,661 | |
Dividend and interest income from investments | 37 | ||
Net unrealized gains recognized | $ 54 | $ 74 |
Derivative Instruments, Hedgi23
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2012 | |
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract] | |||
Notional amount of cash flow hedges | $ 161,500 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated Other Comprehensive Income, net of tax | 1,122 | ||
Accumulated Other Comprehensive Income, net of tax | 541 | ||
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Amount of notional principal interest rate swap | $ 174,600 | ||
Gains and (Losses) on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss Before Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), before Tax | 1,871 | ||
Other comprehensive loss before reclassifications, before tax | (1,771) | ||
Amounts reclassified from accumulated other comprehensive income (to interest expense), before tax | 798 | ||
Net current period other comprehensive loss, before tax | (973) | ||
Accumulated Other Comprehensive Income (Loss), before Tax | 898 | ||
Accumulated Other Comprehensive Income Loss, Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), tax | (749) | ||
Other comprehensive income before reclassifications, tax | 711 | ||
Amounts reclassified From accumulated other comprehensive income (to interest expense), tax | (319) | ||
Net current period other comprehensive loss | 392 | ||
Accumulated Other Comprehensive Income (Loss), tax | (357) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Accumulated Other Comprehensive Income, net of tax | 1,122 | ||
Other comprehensive income before reclassifications, net of tax | (1,060) | ||
Amounts reclassified from accumulated other comprehensive income (to interest expense), net of tax | 479 | ||
Net current period other comprehensive income (loss), net of tax | (581) | ||
Accumulated Other Comprehensive Income, net of tax | 541 | ||
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount reclassified as an increase to interest expense during next twelve months | 1,200 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 898 | $ 1,871 | |
Designated as Hedging Instrument [Member] | Accrued Liabilities and Other [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives Liabilities, Fair Value | (1,167) | (1,309) | |
Designated as Hedging Instrument [Member] | Deferred Charges and Other Assets, Net [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets, Fair Value | $ 2,065 | $ 3,180 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($)State | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)SegmentState | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||
Segment Information [Abstract] | |||||||
Number of reportable segments | Segment | 3 | ||||||
Non Sprint operations, number of states | State | 4 | 4 | |||||
External revenues [Abstract] | |||||||
Total operating revenues | $ 85,701 | $ 81,416 | $ 169,989 | $ 161,868 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,280 | 32,403 | 60,970 | 64,639 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 19,008 | 16,625 | 37,742 | 33,773 | |||
Depreciation and amortization | 17,663 | 16,595 | 34,001 | 31,983 | |||
Total operating expenses | 66,951 | 65,623 | 132,713 | 130,395 | |||
Operating income (loss) | 18,750 | 15,793 | 37,276 | 31,473 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 18,750 | 15,793 | 37,276 | 31,473 | |||
Interest expense | (1,940) | (2,065) | (3,855) | (4,112) | |||
Non-operating income, net | 540 | 573 | 1,074 | 1,182 | |||
Income before income taxes | 17,350 | 14,301 | 34,495 | 28,543 | |||
Assets by segment [Abstract] | |||||||
Assets | 622,257 | 622,257 | $ 619,242 | ||||
Wireless [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 227,089 | 227,089 | 218,887 | ||||
Cable [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 208,584 | 208,584 | 201,232 | ||||
Wireline [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 98,003 | 98,003 | 98,081 | ||||
Other [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 445,039 | 445,039 | 446,028 | ||||
Total Segments [Member] | |||||||
Assets by segment [Abstract] | |||||||
Assets | 978,715 | 978,715 | 964,228 | ||||
Reportable Segments [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 75,755 | 71,644 | 150,281 | 142,470 | |||
Other | 9,946 | 9,772 | 19,708 | 19,398 | |||
Total external revenues | 85,701 | 81,416 | 169,989 | 161,868 | |||
Internal revenues | 0 | 0 | 0 | 0 | |||
Total operating revenues | 85,701 | 81,416 | 169,989 | 161,868 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 30,280 | 32,403 | 60,970 | 64,639 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 19,008 | 16,625 | 37,742 | 33,773 | |||
Depreciation and amortization | 17,663 | 16,595 | 34,001 | 31,983 | |||
Total operating expenses | 66,951 | 65,623 | 132,713 | 130,395 | |||
Operating income (loss) | 18,750 | 15,793 | 37,276 | 31,473 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 18,750 | 15,793 | 37,276 | 31,473 | |||
Reportable Segments [Member] | Wireless [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 48,749 | 47,868 | 97,124 | 95,100 | |||
Other | 2,848 | 2,813 | 5,878 | 5,569 | |||
Total external revenues | 51,597 | 50,681 | 103,002 | 100,669 | |||
Internal revenues | 1,105 | 1,094 | 2,209 | 2,184 | |||
Total operating revenues | 52,702 | 51,775 | 105,211 | 102,853 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 15,903 | 18,476 | 32,090 | 37,132 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 8,917 | 7,657 | 17,969 | 16,089 | |||
Depreciation and amortization | 8,612 | 8,071 | 16,444 | 15,268 | |||
Total operating expenses | 33,432 | 34,204 | 66,503 | 68,489 | |||
Operating income (loss) | 19,270 | 17,571 | 38,708 | 34,364 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 19,270 | 17,571 | 38,708 | 34,364 | |||
Reportable Segments [Member] | Cable [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 22,117 | 18,981 | [1] | 43,518 | 37,855 | [1] | |
Other | 1,850 | 1,823 | [1] | 3,613 | 3,403 | [1] | |
Total external revenues | 23,967 | 20,804 | [1] | 47,131 | 41,258 | [1] | |
Internal revenues | 186 | 33 | [1] | 334 | 59 | [1] | |
Total operating revenues | 24,153 | 20,837 | [1] | 47,465 | 41,317 | [1] | |
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 13,635 | 12,421 | [1] | 27,253 | 24,811 | [1] | |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 5,084 | 4,735 | [1] | 9,976 | 9,381 | [1] | |
Depreciation and amortization | 5,859 | 5,766 | [1] | 11,338 | 11,170 | [1] | |
Total operating expenses | 24,578 | 22,922 | [1] | 48,567 | 45,362 | [1] | |
Operating income (loss) | (425) | (2,085) | [1] | (1,102) | (4,045) | [1] | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | (425) | (2,085) | [1] | (1,102) | (4,045) | [1] | |
Reportable Segments [Member] | Wireline [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 4,889 | 4,795 | [1] | 9,639 | 9,515 | [1] | |
Other | 5,248 | 5,136 | [1] | 10,217 | 10,426 | [1] | |
Total external revenues | 10,137 | 9,931 | [1] | 19,856 | 19,941 | [1] | |
Internal revenues | 6,326 | 5,713 | [1] | 12,192 | 11,478 | [1] | |
Total operating revenues | 16,463 | 15,644 | [1] | 32,048 | 31,419 | [1] | |
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | 7,677 | 7,737 | [1] | 15,011 | 15,219 | [1] | |
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 1,736 | 1,493 | [1] | 3,234 | 2,737 | [1] | |
Depreciation and amortization | 3,083 | 2,653 | [1] | 6,007 | 5,350 | [1] | |
Total operating expenses | 12,496 | 11,883 | [1] | 24,252 | 23,306 | [1] | |
Operating income (loss) | 3,967 | 3,761 | [1] | 7,796 | 8,113 | [1] | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 3,967 | 3,761 | [1] | 7,796 | 8,113 | [1] | |
Reportable Segments [Member] | Other [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 0 | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | 0 | |||
Total external revenues | 0 | 0 | 0 | 0 | |||
Internal revenues | 0 | 0 | 0 | 0 | |||
Total operating revenues | 0 | 0 | 0 | 0 | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | (16) | 0 | 0 | 0 | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | 3,969 | 3,349 | 7,914 | 6,764 | |||
Depreciation and amortization | 109 | 105 | 212 | 195 | |||
Total operating expenses | 4,062 | 3,454 | 8,126 | 6,959 | |||
Operating income (loss) | (4,062) | (3,454) | (8,126) | (6,959) | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | (4,062) | (3,454) | (8,126) | (6,959) | |||
Eliminations [Member] | |||||||
External revenues [Abstract] | |||||||
Service revenues | 0 | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | 0 | |||
Total external revenues | 0 | 0 | 0 | 0 | |||
Internal revenues | (7,617) | (6,840) | (14,735) | (13,721) | |||
Total operating revenues | (7,617) | (6,840) | (14,735) | (13,721) | |||
Operating expenses [Abstract] | |||||||
Cost of goods and services, exclusive of depreciation and amortization shown separately below | (6,919) | (6,231) | (13,384) | (12,523) | |||
Selling, general and administrative, exclusive of depreciation and amortization shown separately below | (698) | (609) | (1,351) | (1,198) | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total operating expenses | (7,617) | (6,840) | (14,735) | (13,721) | |||
Operating income (loss) | 0 | 0 | 0 | 0 | |||
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||
Total consolidated operating income | 0 | $ 0 | 0 | $ 0 | |||
Assets by segment [Abstract] | |||||||
Assets | $ (356,458) | $ (356,458) | $ (344,986) | ||||
[1] | Prior year service and other revenue amounts have been recast to conform to the current year presentation of video and internet equipment revenues being included in service revenue rather than other revenue. |