Shenandoah Telecommunications (SHEN) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

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.