Shenandoah Telecommunications (SHEN) 10-Q 29 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 20, 2016
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	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,768,965
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016

UNAUDITED CONSOLIDATED BALANCE

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 89,160	$ 76,812
Accounts receivable, net	27,012	29,778
Income taxes receivable	712	7,694
Materials and supplies	4,450	4,183
Prepaid expenses and other	7,623	8,573
Deferred income taxes	0	907
Total current assets	128,957	127,947
Investments, including $2,706 and $2,654 carried at fair value	10,860	10,679
Property, plant and equipment, net	410,949	410,018
Other Assets
Intangible assets, net	67,283	66,993
Deferred charges and other assets, net	11,323	11,514
Other assets, net	78,606	78,507
Total assets	629,372	627,151
Current Liabilities
Current maturities of long-term debt, net of unamortized loan fees	22,508	22,492
Accounts payable	10,720	13,009
Advanced billings and customer deposits	11,981	11,674
Accrued compensation	2,037	5,915
Accrued liabilities and other	7,767	7,639
Total current liabilities	55,013	60,729
Long-term debt, less current maturities, net of unamortized loan fees	171,535	177,169
Other Long-Term Liabilities
Deferred income taxes	71,767	74,868
Deferred lease payable	8,349	8,142
Asset retirement obligations	7,412	7,266
Other liabilities	12,027	9,039
Total other long-term liabilities	$ 99,555	$ 99,315
Commitments and Contingencies
Shareholders' Equity
Common stock	$ 33,274	$ 32,776
Accumulated other comprehensive income (loss), net of taxes	(633)	415
Retained earnings	270,628	256,747
Total shareholders' equity	303,269	289,938
Total liabilities and shareholders' equity	$ 629,372	$ 627,151

UNAUDITED CONSOLIDATED BALANCE3

UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Investments at fair value	$ 2,706	$ 2,654

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) [Abstract]
Operating revenues	$ 92,571	$ 84,287
Operating expenses:
Cost of goods and services, exclusive of depreciation and amortization shown separately below	31,762	30,691
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	21,758	18,733
Depreciation and amortization	17,739	16,337
Total operating expenses	71,259	65,761
Operating income	21,312	18,526
Other income (expense):
Interest expense	(1,619)	(1,915)
Gain on investments, net	88	102
Non-operating income, net	468	432
Income before income taxes	20,249	17,145
Income tax expense	6,368	6,859
Net income	13,881	10,286
Other comprehensive income:
Unrealized loss on interest rate hedge, net of tax	(1,048)	(907)
Comprehensive income	$ 12,833	$ 9,379
Earnings per share:
Basic (in dollars per share)	$ 0.29	$ 0.21
Diluted (in dollars per share)	$ 0.28	$ 0.21
Weighted average shares outstanding, basic (in shares)	48,563	48,306
Weighted average shares outstanding, diluted (in shares)	49,249	48,902

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 (Loss) [Member]	Total
Balance at Dec. 31, 2014	$ 29,712	$ 227,512	$ 1,122	$ 258,346
Balance (in shares) at Dec. 31, 2014	48,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	40,864	0	40,864
Other comprehensive loss, net of tax	0	0	(707)	(707)
Dividends declared ($0.24 per share)	0	(11,629)	0	(11,629)
Dividends reinvested in common stock	$ 544	0	0	544
Dividends reinvested in common stock (in shares)	22
Stock based compensation	$ 2,719	0	0	2,719
Common stock issued through exercise of incentive stock options	$ 996	0	0	996
Common stock issued through exercise of incentive stock options (in shares)	87
Common stock issued for share awards	$ 0	0	0	0
Common stock issued for share awards (in shares)	212
Common stock issued	$ 11	0	0	11
Common stock issued (in shares)	1
Common stock repurchased	$ (1,885)	0	0	(1,885)
Common stock repurchased (in shares)	(111)
Net excess tax benefit from stock options exercised	$ 679	0	0	679
Balance at Dec. 31, 2015	$ 32,776	256,747	415	289,938
Balance (in shares) at Dec. 31, 2015	48,475
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	13,881	0	13,881
Other comprehensive loss, net of tax	0	0	(1,048)	(1,048)
Stock based compensation	1,215	0	0	1,215
Common stock issued through exercise of incentive stock options	$ 2,806	0	0	2,806
Common stock issued through exercise of incentive stock options (in shares)	298
Common stock issued for share awards	$ 0	0	0	0
Common stock issued for share awards (in shares)	156
Common stock issued	$ 3	0	0	3
Common stock issued (in shares)	1
Common stock repurchased	$ (3,526)	0	0	(3,526)
Common stock repurchased (in shares)	(161)
Balance at Mar. 31, 2016	$ 33,274	$ 270,628	$ (633)	$ 303,269
Balance (in shares) at Mar. 31, 2016	48,769

UNAUDITED CONSOLIDATED STATEME6

UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2015$ / shares
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract]
Dividends declared per share (in dollars per share)	$ 0.24

UNAUDITED CONSOLIDATED STATEME7

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows From Operating Activities
Net income	$ 13,881	$ 10,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	17,454	15,931
Amortization	285	406
Provision for bad debt	345	321
Stock based compensation expense	1,048	825
Excess tax benefits on stock awards	0	(357)
Deferred income taxes	(1,489)	(1,610)
Net (gain) loss on disposal of equipment	(15)	11
Unrealized gains on investments	(16)	(38)
Net gains from patronage and equity investments	(210)	(202)
Amortization of long term debt issuance costs	132	146
Other	3,039	226
(Increase) decrease in:
Accounts receivable	2,470	1,773
Materials and supplies	(267)	(1,467)
Income taxes receivable	6,981	9,319
Other assets	988	(3,896)
Increase (decrease) in:
Accounts payable	1,895	(5,827)
Deferred lease payable	208	249
Other deferrals and accruals	(3,559)	(2,275)
Net cash provided by operating activities	43,170	23,821
Cash Flows From Investing Activities
Acquisition of property, plant and equipment	(20,537)	(9,500)
Proceeds from sale of equipment	145	24
Cash distributions from investments	45	0
Cash disbursed for acquisition	(2,480)	0
Net cash used in investing activities	(22,827)	(9,476)
Cash Flows From Financing Activities
Principal payments on long-term debt	(5,750)	(5,750)
Cash paid for debt issuance costs	(1,528)	0
Excess tax benefits on stock awards	0	357
Repurchases of common stock	(3,526)	(763)
Proceeds from issuances of common stock	2,809	46
Net cash used in financing activities	(7,995)	(6,110)
Net increase in cash and cash equivalents	12,348	8,235
Cash and cash equivalents:
Beginning	76,812	68,917
Ending	89,160	77,152
Cash payments for:
Interest	1,632	1,905
Income taxes paid (refunded)	$ 876	$ (850)

UNAUDITED CONSOLIDATED STATEME8

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other cash flow information:
Capital expenditures	$ 1.2	$ 2.2

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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, 2015. The balance sheet information at December 31, 2015 was derived from the audited December 31, 2015 consolidated balance sheet.

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	2. Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): March 31, 2016 December 31, 2015 Plant in service $ 736,146 $ 718,503 Plant under construction 36,981 36,600 773,127 755,103 Less accumulated amortization and depreciation 362,178 345,085 Net property, plant and equipment $ 410,949 $ 410,018

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2016
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 thousand and thousand shares and options outstanding at , respectively, 136 thousand and 168 thousand 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	3 Months Ended
	Mar. 31, 2016
Investments Carried at Fair Value [Abstract]
Investments Carried at Fair Value	4. Investments Carried at Fair Value Investments include $2.7 million of investments carried at fair value at both March 31, 2016 and December 31, 2015, consisting of equity, bond and money market mutual funds. Investments carried at fair value 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 three months ended March 31, 2016, the Company recognized $64 thousand in dividend and interest income from investments, and recorded net unrealized gains of $16 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	3 Months Ended
	Mar. 31, 2016
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	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016. 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 March 31, 2016, 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 March 31, 2016 and December 31, 2015 (in thousands): Derivatives Fair Value as of Balance Sheet March 31, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (822 ) $ (682 ) Other liabilities (243 ) - Deferred charges and other assets, net - 1,370 Total derivatives designated as hedging instruments $ (1,065 ) $ 688 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 (loss) by component for the three months ended March 31, 2016 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2015 $ 688 $ (273 ) $ 415 Other comprehensive loss before reclassifications (2,020 ) 812 (1,208 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 267 (107 ) 160 Net current period other comprehensive loss (1,753 ) 705 (1,048 ) Balance as of March 31, 2016 $ (1,065 ) $ 432 $ (633 )

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
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 maker. 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 and cable modem 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 central and southern Pennsylvania. Three months ended March 31, 2016 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 52,179 $ 24,340 $ 4,960 $ - $ - $ 81,479 Other 3,203 1,846 6,043 - - 11,092 Total external revenues 55,382 26,186 11,003 - - 92,571 Internal revenues 1,136 260 7,376 - (8,772 ) - Total operating revenues 56,518 26,446 18,379 - (8,772 ) 92,571 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 16,578 14,647 8,643 - (8,106 ) 31,762 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 11,514 5,108 1,605 4,197 (666 ) 21,758 Depreciation and amortization 8,494 6,095 3,033 117 - 17,739 Total operating expenses 36,586 25,850 13,281 4,314 (8,772 ) 71,259 Operating income (loss) $ 19,932 $ 596 $ 5,098 $ (4,314 ) $ - $ 21,312 Three months ended March 31, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 48,375 $ 21,401 $ 4,750 $ - $ - $ 74,526 Other 3,030 1,762 4,969 - - 9,761 Total external revenues 51,405 23,163 9,719 - - 84,287 Internal revenues 1,104 148 5,866 - (7,118 ) - Total operating revenues 52,509 23,311 15,585 - (7,118 ) 84,287 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 16,187 13,618 7,334 17 (6,465 ) 30,691 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 9,052 4,892 1,498 3,944 (653 ) 18,733 Depreciation and amortization 7,831 5,480 2,924 102 - 16,337 Total operating expenses 33,070 23,990 11,756 4,063 (7,118 ) 65,761 Operating income (loss) $ 19,439 $ (679 ) $ 3,829 $ (4,063 ) $ - $ 18,526 A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended March 31, (in thousands) 2016 2015 Total consolidated operating income $ 21,312 $ 18,526 Interest expense (1,619 ) (1,915 ) Non-operating income, net 556 534 Income before taxes $ 20,249 $ 17,145 The Company’s assets by segment are as follows: (in thousands) March 31, 2016 December 31, 2015 Wireless $ 197,989 $ 205,718 Cable 209,992 209,132 Wireline 107,334 105,369 Other 481,886 463,390 Combined totals 997,201 983,609 Inter-segment eliminations (367,829 ) (356,458 ) Consolidated totals $ 629,372 $ 627,151

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
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. With few exceptions, years prior to 2012 are no longer subject to examination. The Company is not subject to any state or federal income tax audits as of March 31, 2016.

Adoption of New Accounting Prin

Adoption of New Accounting Principles	3 Months Ended
	Mar. 31, 2016
Adoption of New Accounting Principles [Abstract]
Adoption of New Accounting Principles	9. Adoption of New Accounting Principles Effective in the first quarter of 2016, the Company adopted three recent accounting principles, Accounting Standards Update 2015-03, “Interest – Imputation of Interest” (ASU 2015-03), ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, and ASU 2016-09, “Improvements to Employee Share-based Payment Accounting”. ASU 2015-03 requires that premiums, discounts, and loan fees and costs associated with long term debt be reflected as a reduction of the outstanding debt balance. Previous guidance had treated such loan fees and costs as a deferred charge on the balance sheet. As a result of implementing ASU 2015-03, the Company reclassified $1.6 million of unamortized loan fees and costs included in deferred charges and other assets as of December 31, 2015 to long-term debt. Approximately $0.5 million was allocated to current maturities of long-term debt, and $1.1 million to long term debt. Total assets, as well as total liabilities and shareholders’ equity, were also reduced by the same $1.6 million. There was no impact on the statements of income or cash flows. ASU 2015-17 simplifies accounting for deferred taxes by eliminating the requirement to present deferred tax assets and liabilities as current and non-current in a classified balance sheet. Due to the immaterial balance of current deferred tax assets ($0.9 million as of December 31, 2015), the Company has elected to apply this guidance prospectively, and thus prior periods have not been retrospectively adjusted. ASU 2016-09 simplifies certain provisions related to the accounting for the tax effects of stock-based compensation transactions. In particular for the Company, it eliminates the requirement to determine for each award whether the difference between book compensation and tax compensation results in an excess tax benefit or a tax deficiency, which generally speaking, result in an entry to additional paid-in-capital. Under the new guidance, all tax effects for exercised or vested awards are recognized as discrete items in income tax expense. The new guidance also allows an employer to withhold shares to cover more than the minimum statutory withholding taxes (but not more than the maximum statutory withholding requirements) without causing an equity-classified award to become a liability classified award. The other provisions of the new guidance are either not applicable or have no significant impact on the Company’s accounting for stock-based compensation transactions. The Company has elected to early adopt the new guidance and apply it prospectively to tax effects on share-based compensation transactions.

Acquisition of NTELOS Holdings

Acquisition of NTELOS Holdings Corporation	3 Months Ended
	Mar. 31, 2016
Acquisition of NTELOS Holdings Corporation [Abstract]
Acquisition of NTELOS Holdings Corporation	10. Acquisition of NTELOS Holdings Corporation On August 11, 2015, the Company announced that it had entered into a definitive agreement to acquire NTELOS Holdings Corporation ("nTelos") for $9.25 per share in cash for a total equity value of approximately $208 million, after including shares expected to vest on change of control. At closing, the Company will pay off nTelos' outstanding debt, which was $520 million at December 31, 2015. Under the terms of the agreement, the Company will acquire all of nTelos' stock and operations including wireless network assets, retail stores and approximately 298,000 retail subscribers in the nTelos Western Markets. The Company will complete nTelos' plans to close down its Eastern Markets. Concurrent with the signing of the agreement with nTelos, the Company and Sprint Corporation ("Sprint") entered into a series of agreements, including an Addendum to the Shentel Affiliate Agreement and related agreements, whereby the Company and Sprint will, among other things, exchange certain assets in the nTelos Western Markets. The Company will convert nTelos’ retail wireless customers into Sprint branded affiliate customers. Sprint will transition its existing retail wireless operations in the nTelos footprint, including approximately 280,000 Sprint retail customers homed in the nTelos footprint, to Sprint branded affiliate customers. These existing Sprint retail customers, in combination with the nTelos customers, will enable the Company to serve approximately 570,000 additional customers under its affiliate arrangement with Sprint. As part of the transaction, the Company and Sprint have also agreed to extend their Affiliate relationship by five years through 2029. Sprint will receive certain spectrum assets of nTelos, and has agreed to reduce the 8% and 6% Management Fee portions of the retained revenues that would otherwise be due to Sprint under the Affiliate Agreement by $252 million over an expected period of five to six years. On April 15, 2016, the transaction received its remaining regulatory approval from the Federal Communications Commission. The Company, Sprint and nTelos expect that closing will take place in May 2016. The Company will finance the nTelos acquisition and network upgrade with $960 million in credit facilities (including term loans totaling $885 million and a revolver of $75 million) from a syndicate of lenders. Proceeds will be used to finance the transaction and refinance the Company’s existing outstanding indebtedness. This commitment is fully underwritten by CoBank, ACB; Royal Bank of Canada; and Fifth Third Bank. Upon the closing of the merger, the Company expects to have total long-term debt outstanding of approximately $785 million. The revolver and an additional $100 million in a delayed draw term loan are not expected to be drawn at close. During the three months ended March 31, 2016 and 2015, the Company has incurred $0.3 million and $0.1 million, respectively, of expenses associated with the planned acquisition of nTelos.

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consisted of the following (in thousands): March 31, 2016 December 31, 2015 Plant in service $ 736,146 $ 718,503 Plant under construction 36,981 36,600 773,127 755,103 Less accumulated amortization and depreciation 362,178 345,085 Net property, plant and equipment $ 410,949 $ 410,018

Derivative Instruments, Hedgi20

Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 (in thousands): Derivatives Fair Value as of Balance Sheet March 31, December 31, Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities and other $ (822 ) $ (682 ) Other liabilities (243 ) - Deferred charges and other assets, net - 1,370 Total derivatives designated as hedging instruments $ (1,065 ) $ 688
Schedule of Accumulated Other Comprehensive Income (Loss)	The table below presents change in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2016 (in thousands): Gains and (Losses) on Cash Flow Hedges Income Tax (Expense) Benefit Accumulated Other Comprehensive Income (Loss) Balance as of December 31, 2015 $ 688 $ (273 ) $ 415 Other comprehensive loss before reclassifications (2,020 ) 812 (1,208 ) Amounts reclassified from accumulated other comprehensive income (to interest expense) 267 (107 ) 160 Net current period other comprehensive loss (1,753 ) 705 (1,048 ) Balance as of March 31, 2016 $ (1,065 ) $ 432 $ (633 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Information [Abstract]
Selected Financial Data for Segments	The segment also provides video and cable modem 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 central and southern Pennsylvania. Three months ended March 31, 2016 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 52,179 $ 24,340 $ 4,960 $ - $ - $ 81,479 Other 3,203 1,846 6,043 - - 11,092 Total external revenues 55,382 26,186 11,003 - - 92,571 Internal revenues 1,136 260 7,376 - (8,772 ) - Total operating revenues 56,518 26,446 18,379 - (8,772 ) 92,571 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 16,578 14,647 8,643 - (8,106 ) 31,762 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 11,514 5,108 1,605 4,197 (666 ) 21,758 Depreciation and amortization 8,494 6,095 3,033 117 - 17,739 Total operating expenses 36,586 25,850 13,281 4,314 (8,772 ) 71,259 Operating income (loss) $ 19,932 $ 596 $ 5,098 $ (4,314 ) $ - $ 21,312 Three months ended March 31, 2015 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 48,375 $ 21,401 $ 4,750 $ - $ - $ 74,526 Other 3,030 1,762 4,969 - - 9,761 Total external revenues 51,405 23,163 9,719 - - 84,287 Internal revenues 1,104 148 5,866 - (7,118 ) - Total operating revenues 52,509 23,311 15,585 - (7,118 ) 84,287 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 16,187 13,618 7,334 17 (6,465 ) 30,691 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 9,052 4,892 1,498 3,944 (653 ) 18,733 Depreciation and amortization 7,831 5,480 2,924 102 - 16,337 Total operating expenses 33,070 23,990 11,756 4,063 (7,118 ) 65,761 Operating income (loss) $ 19,439 $ (679 ) $ 3,829 $ (4,063 ) $ - $ 18,526
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 March 31, (in thousands) 2016 2015 Total consolidated operating income $ 21,312 $ 18,526 Interest expense (1,619 ) (1,915 ) Non-operating income, net 556 534 Income before taxes $ 20,249 $ 17,145
Assets by Segment	The Company’s assets by segment are as follows: (in thousands) March 31, 2016 December 31, 2015 Wireless $ 197,989 $ 205,718 Cable 209,992 209,132 Wireline 107,334 105,369 Other 481,886 463,390 Combined totals 997,201 983,609 Inter-segment eliminations (367,829 ) (356,458 ) Consolidated totals $ 629,372 $ 627,151

Property, Plant and Equipment22

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, plant and equipment [Abstract]
Total property, plant and equipment	$ 773,127	$ 755,103
Less accumulated amortization and depreciation	362,178	345,085
Net property, plant and equipment	410,949	410,018
Plant in Service [Member]
Property, plant and equipment [Abstract]
Total property, plant and equipment	736,146	718,503
Plant under Construction [Member]
Property, plant and equipment [Abstract]
Total property, plant and equipment	$ 36,981	$ 36,600

Earnings per share (Details)

Earnings per share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings per share [Abstract]
Shares and options outstanding (in shares)	991	1,443
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)	136	168

Investments Carried at Fair V24

Investments Carried at Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Investments Carried at Fair Value [Abstract]
Investments at fair value	$ 2,706		$ 2,654
Dividend and interest income from investments	64
Net unrealized gains recognized	$ 16	$ 38

Derivative Instruments, Hedgi25

Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2012
Derivative Instruments, Hedging Activities and Accumulated Other Comprehensive Income [Abstract]
Notional amount of cash flow hedges	$ 148,400
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), net of tax	415
Accumulated Other Comprehensive Income (Loss), net of tax	(633)
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	688
Other comprehensive loss before reclassifications, before tax	(2,020)
Amounts reclassified from accumulated other comprehensive income (to interest expense), before tax	267
Net current period other comprehensive loss, before tax	(1,753)
Accumulated Other Comprehensive Income (Loss), before Tax	(1,065)
Accumulated Other Comprehensive Income Loss, Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), tax	(273)
Other comprehensive income before reclassifications, tax	812
Amounts reclassified From accumulated other comprehensive income (to interest expense), tax	(107)
Net current period other comprehensive loss	705
Accumulated Other Comprehensive Income (Loss), tax	432
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), net of tax	415
Other comprehensive income before reclassifications, net of tax	(1,208)
Amounts reclassified from accumulated other comprehensive income (to interest expense), net of tax	160
Net current period other comprehensive loss, net of tax	(1,048)
Accumulated Other Comprehensive Income (Loss), net of tax	(633)
Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified as an increase to interest expense during next twelve months	800
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets (Liabilities), at Fair Value, Net	(1,065)	$ 688
Designated as Hedging Instrument [Member] | Accrued Liabilities and Other [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivatives Liabilities, Fair Value	(822)	(682)
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivatives Liabilities, Fair Value	(243)	0
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	$ 0	$ 1,370

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)SegmentState	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Information [Abstract]
Number of reportable segments | Segment	3
Non Sprint operations, number of states | State	4
External revenues [Abstract]
Service revenues	$ 81,479	$ 74,526
Other	11,092	9,761
Total external revenues	92,571	84,287
Internal revenues	0	0
Total operating revenues	92,571	84,287
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	31,762	30,691
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	21,758	18,733
Depreciation and amortization	17,739	16,337
Total operating expenses	71,259	65,761
Operating income (loss)	21,312	18,526
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	21,312	18,526
Interest expense	(1,619)	(1,915)
Non-operating income, net	556	534
Income before income taxes	20,249	17,145
Assets by segment [Abstract]
Assets	629,372		$ 627,151
Error Correction [Abstract]
Depreciation	17,454	15,931
Accumulated depreciation	362,178		345,085
Wireless [Member]
Assets by segment [Abstract]
Assets	197,989		205,718
Cable [Member]
Assets by segment [Abstract]
Assets	209,992		209,132
Wireline [Member]
Assets by segment [Abstract]
Assets	107,334		105,369
Other [Member]
Assets by segment [Abstract]
Assets	481,886		463,390
Total Segments [Member]
Assets by segment [Abstract]
Assets	997,201		983,609
Reportable Segments [Member] | Wireless [Member]
External revenues [Abstract]
Service revenues	52,179	48,375
Other	3,203	3,030
Total external revenues	55,382	51,405
Internal revenues	1,136	1,104
Total operating revenues	56,518	52,509
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	16,578	16,187
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	11,514	9,052
Depreciation and amortization	8,494	7,831
Total operating expenses	36,586	33,070
Operating income (loss)	19,932	19,439
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	19,932	19,439
Reportable Segments [Member] | Cable [Member]
External revenues [Abstract]
Service revenues	24,340	21,401
Other	1,846	1,762
Total external revenues	26,186	23,163
Internal revenues	260	148
Total operating revenues	26,446	23,311
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	14,647	13,618
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	5,108	4,892
Depreciation and amortization	6,095	5,480
Total operating expenses	25,850	23,990
Operating income (loss)	596	(679)
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	596	(679)
Reportable Segments [Member] | Wireline [Member]
External revenues [Abstract]
Service revenues	4,960	4,750
Other	6,043	4,969
Total external revenues	11,003	9,719
Internal revenues	7,376	5,866
Total operating revenues	18,379	15,585
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	8,643	7,334
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	1,605	1,498
Depreciation and amortization	3,033	2,924
Total operating expenses	13,281	11,756
Operating income (loss)	5,098	3,829
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	5,098	3,829
Reportable Segments [Member] | Other [Member]
External revenues [Abstract]
Service revenues	0	0
Other	0	0
Total external revenues	0	0
Internal revenues	0	0
Total operating revenues	0	0
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	0	17
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	4,197	3,944
Depreciation and amortization	117	102
Total operating expenses	4,314	4,063
Operating income (loss)	(4,314)	(4,063)
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	(4,314)	(4,063)
Eliminations [Member]
External revenues [Abstract]
Service revenues	0	0
Other	0	0
Total external revenues	0	0
Internal revenues	(8,772)	(7,118)
Total operating revenues	(8,772)	(7,118)
Operating expenses [Abstract]
Cost of goods and services, exclusive of depreciation and amortization shown separately below	(8,106)	(6,465)
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	(666)	(653)
Depreciation and amortization	0	0
Total operating expenses	(8,772)	(7,118)
Operating income (loss)	0	0
Reconciliation of income from continuing operations from segments to consolidated [Abstract]
Total consolidated operating income	0	$ 0
Assets by segment [Abstract]
Assets	$ (367,829)		$ (356,458)

Adoption of New Accounting Pr27

Adoption of New Accounting Principles (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Adoption of New Accounting Principles [Abstract]
Unamortized loan fees and costs	$ 1.6
Unamortized loan allocation to long-term debt current maturities	0.5
Unamortized loan allocation to long-term debt	1.1
Reduction in total assets and liabilities and shareholders' equity	1.6
Deferred tax assets	$ 0.9

Acquisition of NTELOS Holding28

Acquisition of NTELOS Holdings Corporation (Details) $ / shares in Units, $ in Millions	Aug. 11, 2015USD ($)Customer$ / shares	Mar. 31, 2016USD ($)Customer	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Business Acquisition [Line Items]
Total debt outstanding		$ 785
Expected to drawn amount after closing of the merger		$ 100
NTELOS Holdings Corporation [Member]
Business Acquisition [Line Items]
Share price (in dollars per share) | $ / shares	$ 9.25
Total equity value	$ 208
Number of retail subscribers acquire | Customer	298,000
Total debt outstanding				$ 520
Number of sprint retail customers homed to sprint branded customers | Customer		280,000
Number of additional customers to serve under affiliate agreement with sprint | Customer		570,000
Term of affiliate relationship agreement with sprint		5 years
Management fee on post paid services		8.00%
Management fee on prepaid services		6.00%
Amount of retained revenue reduced by Sprint under the affiliate agreement		$ 252
Amount of expenses associated with acquisition		0.3	$ 0.1
NTELOS Holdings Corporation [Member] | Credit Facilities [Member]
Business Acquisition [Line Items]
Amount finance for acquisition and network upgrade by entity		960
NTELOS Holdings Corporation [Member] | Term Loan [Member]
Business Acquisition [Line Items]
Amount finance for acquisition and network upgrade by entity		885
NTELOS Holdings Corporation [Member] | Revolver [Member]
Business Acquisition [Line Items]
Amount finance for acquisition and network upgrade by entity		$ 75
NTELOS Holdings Corporation [Member] | Minimum [Member]
Business Acquisition [Line Items]
Expected period to reduce the retained revenues under the affiliate agreement		5 years
NTELOS Holdings Corporation [Member] | Maximum [Member]
Business Acquisition [Line Items]
Expected period to reduce the retained revenues under the affiliate agreement		6 years