Delaware |
52-2126395 |
||||
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
||||
505 Third Avenue East, Oneonta, Alabama |
35121 |
||||
(Address of Principal Executive Offices) |
(Zip Code) |
Title of Each Class |
Name of Each Exchange on Which Registered |
||||
---|---|---|---|---|---|
Class A Common Stock ($0.01 par value per share) |
The NASDAQ Stock Market LLC |
Large accelerated filer ☐ |
Accelerated filer ☒ |
Non-accelerated filer ☐ (Do not check if a smaller reporting company) |
Smaller reporting company ☐ |
Page |
||||||||
---|---|---|---|---|---|---|---|---|
PART I |
||||||||
Item 1. |
Business |
|||||||
Item 1A. |
Risk Factors |
|||||||
Item 1B. |
Unresolved Staff Comments |
|||||||
Item 2. |
Properties |
|||||||
Item 3. |
Legal Proceedings |
|||||||
Item 4. |
Mine Safety Disclosures |
|||||||
Item X. |
Executive Officers of the Registrant |
|||||||
PART II |
||||||||
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
|||||||
Item 6. |
Selected Financial Data |
|||||||
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|||||||
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk |
|||||||
Item 8. |
Financial Statements and Supplementary Data |
|||||||
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
|||||||
Item 9A. |
Controls and Procedures |
|||||||
Item 9B. |
Other Information |
|||||||
PART III |
||||||||
Item 10. |
Directors, Executive Officers and Corporate Governance |
|||||||
Item 11. |
Executive Compensation |
|||||||
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|||||||
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
|||||||
Item 14. |
Principal Accounting Fees and Services |
|||||||
PART IV |
||||||||
Item 15. |
Exhibits, Financial Statement Schedules |
Access line equivalents: |
|||||||
Business/enterprise |
49,087 |
||||||
Residence |
49,657 |
||||||
Total |
98,744 |
||||||
Cable, IPTV and satellite television |
4,164 |
||||||
Security systems |
174 |
||||||
Other internet lines |
3,750 |
Source of Revenue |
|||||||
Local services |
38.7 |
% |
|||||
Network access |
31.8 |
% |
|||||
Internet |
18.4 |
% |
|||||
Transport services |
7.3 |
% |
|||||
Cable television |
3.8 |
% |
|||||
Total |
100.0 |
% |
Land |
$ |
1,164 |
|||||
Buildings and improvements |
12,326 |
||||||
Telephone equipment |
226,496 |
||||||
Cable television equipment |
11,717 |
||||||
Furniture and equipment |
3,004 |
||||||
Vehicles |
6,409 |
||||||
Computer software and equipment |
16,294 |
||||||
Internet equipment |
3,884 |
||||||
Total property and equipment |
281,294 |
||||||
Accumulated depreciation |
(226,832 |
) |
|||||
Net property and equipment |
$ |
54,462 |
Name |
Age |
Position |
||||||
---|---|---|---|---|---|---|---|---|
Michael D. Weaver |
61 |
President, Chief Executive Officer and Director |
||||||
Curtis L. Garner, Jr. |
66 |
Chief Financial Officer |
||||||
Dennis K. Andrews |
57 |
Senior Vice President and General Manager – Alabama & Missouri |
||||||
Jerry C. Boles |
61 |
Senior Vice President and Controller |
||||||
Robert J. Souza |
60 |
Senior Vice President and General Manager – New England |
||||||
Edwin D. Tisdale |
54 |
Senior Vice President – New England Support Services |
||||||
E. Todd Wessing |
48 |
Vice President and General Manager – Missouri |
High |
Low |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2013 |
||||||||||||
Fourth Quarter |
$ |
8.52 |
$ |
5.40 |
||||||||
Third Quarter |
$ |
10.20 |
$ |
7.46 |
||||||||
Second Quarter |
$ |
11.91 |
$ |
9.16 |
5/28/13 |
6/13 |
7/13 |
8/13 |
9/13 |
10/13 |
11/13 |
12/13 |
|||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Otelco Inc. |
$ |
100.00 |
$ |
76.91 |
$ |
73.89 |
$ |
68.09 |
$ |
62.80 |
$ |
68.51 |
$ |
58.35 |
$ |
47.27 |
||||||||||||||||||||||||||
Russell 2000 |
$ |
100.00 |
$ |
99.49 |
$ |
106.45 |
$ |
103.07 |
$ |
109.65 |
$ |
112.40 |
$ |
116.91 |
$ |
119.21 |
||||||||||||||||||||||||||
S&P Telecommunication Services |
$ |
100.00 |
$ |
101.92 |
$ |
102.13 |
$ |
97.90 |
$ |
97.44 |
$ |
105.75 |
$ |
103.05 |
$ |
102.77 |
As Of and For The Year Ended December 31, |
|||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 |
2010 |
2011(1) |
2012 |
2013 |
|||||||||||||||||||||||
(In Thousands Except Per Share Amounts) |
|||||||||||||||||||||||||||
Income Statement Data |
|||||||||||||||||||||||||||
Revenues: |
|||||||||||||||||||||||||||
Local services |
$ |
48,441 |
$ |
49,014 |
$ |
47,463 |
$ |
44,880 |
$ |
30,536 |
|||||||||||||||||
Network access |
33,297 |
32,982 |
32,128 |
29,934 |
25,154 |
||||||||||||||||||||||
Internet |
14,027 |
14,015 |
13,946 |
14,802 |
14,540 |
||||||||||||||||||||||
Transport services |
5,501 |
5,590 |
5,326 |
5,635 |
5,740 |
||||||||||||||||||||||
Cable television |
2,489 |
2,799 |
2,980 |
3,153 |
3,002 |
||||||||||||||||||||||
Total |
$ |
103,755 |
$ |
104,400 |
$ |
101,843 |
$ |
98,404 |
$ |
78,972 |
|||||||||||||||||
Income (loss) from operations |
$ |
21,927 |
$ |
26,369 |
$ |
24,630 |
$ |
(129,394 |
) |
$ |
18,651 |
||||||||||||||||
Income (loss) before income tax |
$ |
(4,484 |
) |
$ |
1,301 |
$ |
2,447 |
$ |
(151,767 |
) |
$ |
115,511 |
|||||||||||||||
Net income (loss) available to common stockholders |
$ |
(3,118 |
) |
$ |
691 |
$ |
2,197 |
$ |
(126,900 |
) |
$ |
109,144 |
|||||||||||||||
Net income (loss) per common share(2) |
$ |
(1.18 |
) |
$ |
0.26 |
$ |
0.83 |
$ |
(47.99 |
) |
$ |
37.36 |
|||||||||||||||
Dividends declared per share(3) |
$ |
0.71 |
$ |
0.71 |
$ |
0.71 |
$ |
0.18 |
$ |
— |
|||||||||||||||||
Balance Sheet Data |
|||||||||||||||||||||||||||
Cash and cash equivalents |
$ |
17,731 |
$ |
18,226 |
$ |
12,394 |
$ |
32,516 |
$ |
9,916 |
|||||||||||||||||
Property and equipment, net |
$ |
69,029 |
$ |
63,887 |
$ |
65,882 |
$ |
58,243 |
$ |
54,462 |
|||||||||||||||||
Total assets |
$ |
337,528 |
$ |
322,136 |
$ |
317,724 |
$ |
172,325 |
$ |
131,678 |
|||||||||||||||||
Long-term notes payable (including current portion) |
$ |
273,717 |
$ |
271,596 |
$ |
271,106 |
$ |
270,990 |
$ |
128,633 |
December 31, 2012 |
September 30, 2013 |
December 31, 2013 |
Quarterly % Change from September 30, 2013 |
Annual % Change from 2012 – 2013 |
|||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Business/Enterprise |
|||||||||||||||||||||||||||
CLEC |
|||||||||||||||||||||||||||
Voice lines |
23,950 |
21,903 |
21,149 |
(3.4 |
)% |
(11.7 |
)% |
||||||||||||||||||||
HPBX seats |
6,172 |
8,092 |
8,453 |
4.5 |
% |
37.0 |
% |
||||||||||||||||||||
Data lines |
2,771 |
2,865 |
2,725 |
(4.9 |
)% |
(1.7 |
)% |
||||||||||||||||||||
Wholesale network lines(1) |
2,289 |
2,756 |
2,817 |
2.2 |
% |
23.1 |
% |
||||||||||||||||||||
RLEC |
|||||||||||||||||||||||||||
Voice lines |
11,542 |
11,892 |
12,349 |
3.8 |
% |
7.0 |
% |
||||||||||||||||||||
Data lines |
1,630 |
1,610 |
1,594 |
(1.0 |
)% |
(2.2 |
)% |
||||||||||||||||||||
Access line equivalents(2) |
48,354 |
49,118 |
49,087 |
(0.1 |
)% |
1.5 |
% |
||||||||||||||||||||
Residential |
|||||||||||||||||||||||||||
CLEC |
|||||||||||||||||||||||||||
Voice lines |
348 |
342 |
339 |
(0.9 |
)% |
(2.6 |
)% |
||||||||||||||||||||
Data lines |
391 |
409 |
416 |
1.7 |
% |
6.4 |
% |
||||||||||||||||||||
RLEC |
|||||||||||||||||||||||||||
Voice lines |
31,479 |
29,144 |
28,336 |
(2.8 |
)% |
(10.0 |
)% |
||||||||||||||||||||
Data lines |
21,112 |
20,723 |
20,566 |
(0.8 |
)% |
(2.6 |
)% |
||||||||||||||||||||
Access line equivalents(2) |
53,330 |
50,618 |
49,657 |
(1.9 |
)% |
(6.9 |
)% |
||||||||||||||||||||
Otelco access line equivalents(2) |
101,684 |
99,736 |
98,744 |
(1.0 |
)% |
(2.9 |
)% |
||||||||||||||||||||
Cable, IPTV & satellite television |
4,388 |
4,200 |
4,164 |
(0.9 |
)% |
(5.1 |
)% |
||||||||||||||||||||
Security systems |
63 |
137 |
174 |
27.0 |
% |
176.2 |
% |
||||||||||||||||||||
Other internet lines |
4,506 |
3,938 |
3,750 |
(4.8 |
)% |
(16.8 |
)% |
Year Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
Revenues |
|||||||||||||||||
Local services |
46.6 |
% |
45.6 |
% |
38.7 |
% |
|||||||||||
Network access |
31.6 |
30.4 |
31.8 |
||||||||||||||
Internet |
13.7 |
15.1 |
18.4 |
||||||||||||||
Transport services |
5.2 |
5.7 |
7.3 |
||||||||||||||
Cable, IPTV and satellite television |
2.9 |
3.2 |
3.8 |
||||||||||||||
Total revenues |
100.0 |
% |
100.0 |
% |
100.0 |
% |
|||||||||||
Operating expenses |
|||||||||||||||||
Cost of services |
43.2 |
42.9 |
46.3 |
||||||||||||||
Selling, general and administrative expenses |
12.7 |
14.2 |
14.1 |
||||||||||||||
Depreciation and amortization |
19.9 |
19.6 |
16.0 |
||||||||||||||
Long-lived assets impairment – property and equipment |
— |
2.9 |
— |
||||||||||||||
Long-lived assets impairment – intangibles |
— |
5.8 |
— |
||||||||||||||
Goodwill impairment |
— |
146.0 |
— |
||||||||||||||
Total operating expenses |
75.8 |
231.4 |
76.4 |
||||||||||||||
Income (loss) from operations |
24.2 |
(131.4 |
) |
23.6 |
|||||||||||||
Other income (expense) |
|||||||||||||||||
Interest expense |
(24.3 |
) |
(23.3 |
) |
(16.0 |
) |
|||||||||||
Change in fair value of derivatives |
2.2 |
0.2 |
— |
||||||||||||||
Other income |
0.3 |
0.3 |
0.3 |
||||||||||||||
Total other expenses |
(21.8 |
) |
(22.8 |
) |
(15.7 |
) |
|||||||||||
Income (loss) before reorganization items and income tax |
2.4 |
(154.2 |
) |
7.9 |
|||||||||||||
Reorganization items |
— |
— |
138.4 |
||||||||||||||
Income (loss) before income taxes |
2.4 |
(154.2 |
) |
146.3 |
|||||||||||||
Income tax (expense) benefit |
(0.2 |
) |
25.3 |
(8.1 |
) |
||||||||||||
Net income (loss) |
2.2 |
% |
(128.9 |
)% |
138.2 |
% |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Local services |
$ |
44,880 |
$ |
30,536 |
$ |
(14,344 |
) |
(32.0 |
)% |
|||||||||||||
Network access |
29,934 |
25,154 |
(4,780 |
) |
(16.0 |
) |
||||||||||||||||
Internet |
14,802 |
14,540 |
(262 |
) |
(1.8 |
) |
||||||||||||||||
Transport services |
5,635 |
5,740 |
105 |
1.9 |
||||||||||||||||||
Cable, IPTV and satellite television |
3,153 |
3,002 |
(151 |
) |
(4.8 |
) |
||||||||||||||||
Total |
$ |
98,404 |
$ |
78,972 |
$ |
(19,432 |
) |
(19.7 |
) |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Cost of services |
$ |
42,232 |
$ |
36,552 |
$ |
(5,680 |
) |
(13.4 |
)% |
|||||||||||||
Selling, general and administrative expenses |
14,013 |
11,137 |
(2,876 |
) |
(20.5 |
) |
||||||||||||||||
Depreciation and amortization |
19,277 |
12,632 |
(6,645 |
) |
(34.5 |
) |
||||||||||||||||
Long-lived assets impairment – property and equipment |
2,874 |
— |
(2,874 |
) |
(100.0 |
) |
||||||||||||||||
Long-lived assets impairment – intangibles |
5,748 |
— |
(5,748 |
) |
(100.0 |
) |
||||||||||||||||
Goodwill impairment |
143,654 |
— |
(143,654 |
) |
(100.0 |
) |
||||||||||||||||
Total |
$ |
227,798 |
$ |
60,321 |
$ |
(167,477 |
) |
(73.5 |
) |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Interest expense |
$ |
(22,932 |
) |
$ |
(12,673 |
) |
$ |
(10,259 |
) |
(44.7 |
)% |
|||||||||||
Change in fair value of derivatives |
241 |
— |
(241 |
) |
(100.0 |
) |
||||||||||||||||
Other income |
317 |
275 |
(42 |
) |
(13.4 |
) |
||||||||||||||||
Reorganization items |
— |
109,258 |
109,258 |
NM |
||||||||||||||||||
Income tax (expense) benefit |
24,868 |
(6,367 |
) |
(31,235 |
) |
NM |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Local services |
$ |
47,463 |
$ |
44,881 |
$ |
(2,582 |
) |
(5.4 |
)% |
|||||||||||||
Network access |
32,128 |
29,934 |
(2,194 |
) |
(6.8 |
) |
||||||||||||||||
Internet |
13,946 |
14,801 |
855 |
6.1 |
||||||||||||||||||
Transport services |
5,326 |
5,635 |
309 |
5.8 |
||||||||||||||||||
Cable, IPTV and satellite television |
2,981 |
3,153 |
172 |
5.8 |
||||||||||||||||||
Total revenues |
$ |
101,844 |
$ |
98,404 |
$ |
(3,440 |
) |
(3.4 |
) |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Cost of services |
$ |
43,996 |
$ |
42,232 |
$ |
(1,764 |
) |
(4.0 |
)% |
|||||||||||||
Selling, general and administrative expenses |
12,985 |
14,013 |
1,028 |
7.9 |
||||||||||||||||||
Depreciation and amortization |
20,232 |
19,277 |
(955 |
) |
(4.7 |
) |
||||||||||||||||
Long-lived assets impairment – property and equipment |
— |
2,874 |
2,874 |
NM |
||||||||||||||||||
Long-lived assets impairment – intangibles |
— |
5,748 |
5,748 |
NM |
||||||||||||||||||
Goodwill impairment |
— |
143,654 |
143,654 |
NM |
||||||||||||||||||
Total |
$ |
77,213 |
$ |
227,798 |
$ |
150,585 |
NM |
Year Ended December 31, |
Change |
|||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
Amount |
Percent |
|||||||||||||||||||
(Dollars in Thousands) |
||||||||||||||||||||||
Interest expense |
$ |
(24,776 |
) |
$ |
(22,932 |
) |
$ |
(1,844 |
) |
(7.4 |
)% |
|||||||||||
Change in fair value of derivatives |
2,230 |
241 |
(1,989 |
) |
NM |
|||||||||||||||||
Other income |
363 |
316 |
(47 |
) |
(12.9 |
) |
||||||||||||||||
Income tax benefit (expense) |
(250 |
) |
24,868 |
25,118 |
NM |
Year Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
(Dollars in Thousands) |
|||||||||||||||||
Cash generation |
|||||||||||||||||
Revenue |
$ |
101,843 |
$ |
98,404 |
$ |
78,972 |
|||||||||||
Other income |
363 |
317 |
275 |
||||||||||||||
Cash received from operations |
$ |
102,206 |
$ |
98,721 |
$ |
79,247 |
|||||||||||
Cost of services |
$ |
43,996 |
$ |
42,232 |
$ |
36,552 |
|||||||||||
Selling, general and administrative expenses |
12,984 |
14,013 |
11,137 |
||||||||||||||
Reorganization (cash) items(1) |
— |
— |
3,580 |
||||||||||||||
Cash consumed by operations |
$ |
56,980 |
$ |
56,245 |
$ |
47,689 |
|||||||||||
Cash generated from operations |
$ |
45,226 |
$ |
42,476 |
$ |
31,558 |
|||||||||||
Cash utilization |
|||||||||||||||||
Capital investment in operations |
$ |
10,548 |
$ |
6,357 |
$ |
6,229 |
|||||||||||
Principal repayment on long-term notes payable(2) |
— |
— |
4,668 |
||||||||||||||
Senior debt interest and fees |
9,577 |
7,639 |
8,235 |
||||||||||||||
Interest on senior subordinated notes |
13,996 |
6,998 |
— |
||||||||||||||
Dividends |
9,321 |
2,330 |
— |
||||||||||||||
Cash utilized by the Company |
$ |
43,442 |
$ |
23,324 |
$ |
19,132 |
|||||||||||
Percentage of cash utilized of cash generated |
96.1 |
% |
54.9 |
% |
60.6 |
% |
Year Ended December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
(Dollars in Thousands) |
||||||||||||
Net income (loss) |
$ |
(126,900 |
) |
$ |
109,144 |
|||||||
Add: Depreciation |
10,496 |
9,650 |
||||||||||
Interest expense – net of premium |
21,564 |
11,602 |
||||||||||
Interest expense – amortize loan cost |
1,368 |
1,071 |
||||||||||
Income tax expense (benefit) |
(24,868 |
) |
6,367 |
|||||||||
Change in fair value of derivatives |
(241 |
) |
— |
|||||||||
Loan fees |
76 |
45 |
||||||||||
Amortization – intangibles |
8,781 |
2,981 |
||||||||||
Goodwill impairment |
143,653 |
— |
||||||||||
Impairment of long-lived assets |
8,622 |
— |
||||||||||
Cancellation of debt |
— |
(118,209 |
) |
|||||||||
Restructuring and settlement expense |
2,629 |
9,182 |
||||||||||
Adjusted EBITDA |
$ |
45,180 |
$ |
31,833 |
Total |
Less than 1 Year |
1 – 3 years |
3 – 5 years |
More than 5 years |
|||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Third amended and restated credit facility |
|||||||||||||||||||||||||||
Term(1) |
$ |
128,633 |
$ |
7,441 |
$ |
121,192 |
$ |
— |
$ |
— |
|||||||||||||||||
Revolver(2) |
— |
— |
— |
— |
— |
||||||||||||||||||||||
Expected interest expense(3) |
18,587 |
8,273 |
10,314 |
— |
— |
||||||||||||||||||||||
Total contractual cash obligations |
$ |
147,220 |
$ |
15,714 |
$ |
131,506 |
$ |
— |
$ |
— |
As of December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
$ |
32,516 |
$ |
9,916 |
||||||||
Accounts receivable: |
||||||||||||
Due from subscribers, net of allowance for doubtful accounts of $239 and $274, respectively |
4,206 |
3,730 |
||||||||||
Unbilled receivables |
2,004 |
1,906 |
||||||||||
Other |
5,336 |
2,050 |
||||||||||
Materials and supplies |
1,845 |
1,654 |
||||||||||
Prepaid expenses |
1,982 |
1,863 |
||||||||||
Deferred income taxes |
1,843 |
905 |
||||||||||
Total current assets |
49,732 |
22,024 |
||||||||||
Property and equipment, net |
58,243 |
54,462 |
||||||||||
Goodwill |
44,957 |
44,957 |
||||||||||
Intangible assets, net |
6,671 |
4,074 |
||||||||||
Investments |
1,919 |
1,895 |
||||||||||
Deferred financing costs, net |
4,037 |
2,097 |
||||||||||
Deferred income taxes |
6,276 |
1,606 |
||||||||||
Other assets |
490 |
563 |
||||||||||
Total assets |
$ |
172,325 |
$ |
131,678 |
||||||||
Liabilities and Stockholders’ Deficit |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable |
$ |
2,007 |
$ |
1,552 |
||||||||
Accrued expenses |
14,901 |
5,141 |
||||||||||
Advance billings and payments |
1,560 |
1,422 |
||||||||||
Deferred income taxes |
431 |
469 |
||||||||||
Customer deposits |
91 |
84 |
||||||||||
Current maturity of long-term notes payable |
270,990 |
7,441 |
||||||||||
Total current liabilities |
289,980 |
16,109 |
||||||||||
Deferred income taxes |
22,670 |
23,181 |
||||||||||
Advance billings and payments |
789 |
736 |
||||||||||
Other liabilities |
484 |
139 |
||||||||||
Long-term notes payable, less current maturities |
— |
121,192 |
||||||||||
Total liabilities |
313,923 |
161,357 |
||||||||||
Stockholders’ deficit |
||||||||||||
Class A Common Stock, $.01 par value-authorized 20,000,000 shares; issued and outstanding 13,221,404 shares as of December 31, 2012 and zero as of December 31, 2013 |
132 |
— |
||||||||||
Class A Common Stock, $.01 par value-authorized 10,000,000 shares; issued and outstanding 2,870,948 shares as of December 31, 2013 |
— |
29 |
||||||||||
Class B Common Stock, $.01 par value-authorized 250,000 shares; issued and outstanding 232,780 shares as of December 31, 2013 |
— |
2 |
||||||||||
Additional paid in capital |
— |
2,876 |
||||||||||
Retained deficit |
(141,730 |
) |
(32,586 |
) |
||||||||
Total stockholders’ deficit |
(141,598 |
) |
(29,679 |
) |
||||||||
Total liabilities and stockholders’ deficit |
$ |
172,325 |
$ |
131,678 |
Years Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
Revenues |
$ |
101,843 |
$ |
98,404 |
$ |
78,972 |
|||||||||||
Operating expenses |
|||||||||||||||||
Cost of services |
43,996 |
42,232 |
36,552 |
||||||||||||||
Selling, general and administrative expenses |
12,984 |
14,013 |
11,137 |
||||||||||||||
Depreciation and amortization |
20,233 |
19,277 |
12,632 |
||||||||||||||
Long-lived assets impairment – property and equipment |
— |
2,874 |
— |
||||||||||||||
Long-lived assets impairment – intangibles |
— |
5,748 |
— |
||||||||||||||
Goodwill impairment |
— |
143,654 |
— |
||||||||||||||
Total operating expenses |
77,213 |
227,798 |
60,321 |
||||||||||||||
Income (loss) from operations |
24,630 |
(129,394 |
) |
18,651 |
|||||||||||||
Other income (expense) |
|||||||||||||||||
Interest expense |
(24,776 |
) |
(22,932 |
) |
(12,673 |
) |
|||||||||||
Change in fair value of derivatives |
2,230 |
241 |
— |
||||||||||||||
Other income |
363 |
317 |
275 |
||||||||||||||
Total other expenses |
(22,183 |
) |
(22,374 |
) |
(12,398 |
) |
|||||||||||
Income (loss) before reorganization items and income tax |
2,447 |
(151,768 |
) |
6,253 |
|||||||||||||
Reorganization items |
— |
— |
109,258 |
||||||||||||||
Income (loss) before income tax |
2,447 |
(151,768 |
) |
115,511 |
|||||||||||||
Income tax benefit (expense) |
(250 |
) |
24,868 |
(6,367 |
) |
||||||||||||
Net income (loss) |
$ |
2,197 |
$ |
(126,900 |
) |
$ |
109,144 |
||||||||||
Weighted average common shares outstanding (2011 and 2012 adjusted to be consistent with implementation of the Plan) |
2,644,281 |
2,644,281 |
2,921,208 |
||||||||||||||
Net income (loss) per common share (2011 and 2012 adjusted to be consistent with implementation of the Plan) |
$ |
0.83 |
$ |
(47.99 |
) |
$ |
37.36 |
||||||||||
Dividends declared per common share |
$ |
0.71 |
$ |
0.18 |
$ |
— |
Class A Common Stock |
Class B Common Stock |
Additional Paid-In Capital |
Retained Deficit |
Total Stockholders’ Deficit |
|||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 |
13,221,404 |
$ |
132 |
— |
$ |
— |
$ |
922 |
$ |
(6,298 |
) |
$ |
(5,244 |
) |
|||||||||||||||||||||||
Net Income |
2,197 |
2,197 |
|||||||||||||||||||||||||||||||||||
Dividends declared |
(922 |
) |
(8,399 |
) |
(9,321 |
) |
|||||||||||||||||||||||||||||||
Balance, December 31, 2011 |
13,221,404 |
$ |
132 |
— |
$ |
— |
$ |
— |
$ |
(12,500 |
) |
$ |
(12,368 |
) |
|||||||||||||||||||||||
Net loss |
(126,900 |
) |
(126,900 |
) |
|||||||||||||||||||||||||||||||||
Dividends declared |
— |
(2,330 |
) |
(2,330 |
) |
||||||||||||||||||||||||||||||||
Balance, December 31, 2012 |
13,221,404 |
$ |
132 |
— |
$ |
— |
$ |
— |
$ |
(141,730 |
) |
$ |
(141,598 |
) |
|||||||||||||||||||||||
Net Income |
109,144 |
109,144 |
|||||||||||||||||||||||||||||||||||
Cancellation of Class A stock |
(13,221,404 |
) |
(132 |
) |
(132 |
) |
|||||||||||||||||||||||||||||||
Issuance of Class A stock |
2,870,948 |
29 |
106 |
135 |
|||||||||||||||||||||||||||||||||
Issuance of Class B stock |
232,780 |
2 |
2,770 |
2,772 |
|||||||||||||||||||||||||||||||||
Balance, December 31, 2013 |
2,870,948 |
$ |
29 |
232,780 |
$ |
2 |
$ |
2,876 |
$ |
(32,586 |
) |
$ |
(29,679 |
) |
Years Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||
Net income (loss) |
$ |
2,197 |
$ |
(126,900 |
) |
$ |
109,144 |
||||||||||
Adjustments to reconcile net income (loss) to cash flows provided by operating activities: |
|||||||||||||||||
Depreciation |
11,892 |
10,496 |
9,650 |
||||||||||||||
Amortization |
8,341 |
8,781 |
2,982 |
||||||||||||||
Long-lived assets impairment – property and equipment |
— |
2,874 |
— |
||||||||||||||
Long-lived assets impairment – intangibles |
— |
5,748 |
— |
||||||||||||||
Goodwill impairment |
— |
143,654 |
— |
||||||||||||||
Amortization of loan costs |
1,368 |
1,368 |
1,071 |
||||||||||||||
Amortization of notes payable premium |
(104 |
) |
(116 |
) |
(31 |
) |
|||||||||||
Change in fair value of derivatives |
(2,230 |
) |
(242 |
) |
— |
||||||||||||
Provision (benefit) for deferred income taxes |
227 |
(24,924 |
) |
6,157 |
|||||||||||||
Provision for uncollectible accounts receivable |
915 |
620 |
418 |
||||||||||||||
Changes in operating assets and liabilities: |
|||||||||||||||||
Accounts receivable |
(1,590 |
) |
(177 |
) |
3,442 |
||||||||||||
Material and supplies |
173 |
(64 |
) |
191 |
|||||||||||||
Prepaid expenses and other assets |
(117 |
) |
(905 |
) |
44 |
||||||||||||
Accounts payable and accrued expenses |
(1,423 |
) |
9,154 |
334 |
|||||||||||||
Advance billings and payments |
(117 |
) |
142 |
(191 |
) |
||||||||||||
Other liabilities |
(2 |
) |
222 |
(351 |
) |
||||||||||||
Reorganization adjustments: |
|||||||||||||||||
Non-cash reorganization income |
— |
— |
(114,210 |
) |
|||||||||||||
Net cash from operating activities |
19,530 |
29,731 |
18,650 |
||||||||||||||
Cash flows used in investing activities: |
|||||||||||||||||
Acquisition and construction of property and equipment |
(10,548 |
) |
(6,357 |
) |
(6,229 |
) |
|||||||||||
Purchase of investment |
(2 |
) |
(1 |
) |
— |
||||||||||||
Payments for the purchase of Shoreham Telephone, net of cash acquired |
(5,010 |
) |
— |
— |
|||||||||||||
Net cash used in investing activities |
(15,560 |
) |
(6,358 |
) |
(6,229 |
) |
|||||||||||
Cash flows used in financing activities: |
|||||||||||||||||
Cash dividends paid |
(9,321 |
) |
(2,330 |
) |
— |
||||||||||||
Principal repayment of long-term notes payable |
(386 |
) |
— |
(33,368 |
) |
||||||||||||
Loan origination costs |
(95 |
) |
(920 |
) |
(1,653 |
) |
|||||||||||
Net cash used in financing activities |
(9,802 |
) |
(3,250 |
) |
(35,021 |
) |
|||||||||||
Net increase (decrease) in cash and cash equivalents |
(5,832 |
) |
20,123 |
(22,600 |
) |
||||||||||||
Cash and cash equivalents, beginning of period |
18,225 |
12,393 |
32,516 |
||||||||||||||
Cash and cash equivalents, end of period |
$ |
12,393 |
$ |
32,516 |
$ |
9,916 |
|||||||||||
Supplemental disclosures of cash flow information: |
|||||||||||||||||
Interest paid |
$ |
24,131 |
$ |
14,896 |
$ |
8,581 |
|||||||||||
Income taxes paid |
$ |
91 |
$ |
77 |
$ |
248 |
|||||||||||
Loan fees paid via issuance of Class B common stock |
$ |
— |
$ |
— |
$ |
2,772 |
|||||||||||
Cancellation of Class A common stock |
$ |
— |
$ |
— |
$ |
132 |
|||||||||||
Issuance of Class A common stock |
$ |
— |
$ |
— |
$ |
29 |
Alabama Reporting Unit |
Missouri Reporting Unit |
New England Reporting Unit |
Total |
|||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance as of December 31, 2011 |
$ |
101,603 |
$ |
17,829 |
$ |
69,523 |
$ |
188,955 |
||||||||||||||
Impairment losses |
(62,404 |
) |
(12,071 |
) |
(69,179 |
) |
(143,654 |
) |
||||||||||||||
Adjustment related to STC acquisition(1) |
— |
— |
(344 |
) |
(344 |
) |
||||||||||||||||
Balance as of December 31, 2012 |
$ |
39,199 |
$ |
5,758 |
$ |
— |
$ |
44,957 |
||||||||||||||
Impairment losses |
— |
— |
— |
— |
||||||||||||||||||
Balance as of December 31, 2013 |
$ |
39,199 |
$ |
5,758 |
$ |
— |
$ |
44,957 |
Alabama Reporting Unit |
Missouri Reporting Unit |
New England Reporting Unit |
Total |
|||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance as of December 31, 2011 |
$ |
129 |
$ |
356 |
$ |
20,061 |
$ |
20,456 |
||||||||||||||
Amortization |
(48 |
) |
(120 |
) |
(7,959 |
) |
(8,127 |
) |
||||||||||||||
Impairment losses |
— |
— |
(5,748 |
) |
(5,748 |
) |
||||||||||||||||
Balance as of December 31, 2012 |
$ |
81 |
$ |
236 |
$ |
6,354 |
$ |
6,671 |
||||||||||||||
Amortization |
(27 |
) |
(120 |
) |
(2,450 |
) |
(2,597 |
) |
||||||||||||||
Balance as of December 31, 2013 |
$ |
54 |
$ |
116 |
$ |
3,904 |
$ |
4,074 |
December 31, 2012 |
||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Carrying Value |
Accumulated Amortization |
Impairments |
Net Book Value |
|||||||||||||||||||
Customer relationships |
$ |
29,430 |
$ |
(18,065 |
) |
$ |
(5,729 |
) |
$ |
5,636 |
||||||||||||
Contract relationships |
19,600 |
(18,579 |
) |
— |
1,021 |
|||||||||||||||||
Non-competition |
95 |
(75 |
) |
(12 |
) |
8 |
||||||||||||||||
Trade name |
16 |
(3 |
) |
(7 |
) |
6 |
||||||||||||||||
Total |
$ |
49,141 |
$ |
(36,722 |
) |
$ |
(5,748 |
) |
$ |
6,671 |
December 31, 2013 |
||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revised Calculated Carrying Value(1) |
Accumulated Amortization |
Impairments |
Net Book Value |
|||||||||||||||||||
Customer relationships |
$ |
23,701 |
$ |
(19,632 |
) |
$ |
— |
$ |
4,069 |
|||||||||||||
Contract relationships |
19,600 |
(19,600 |
) |
— |
— |
|||||||||||||||||
Non-competition |
83 |
(83 |
) |
— |
— |
|||||||||||||||||
Trade name |
9 |
(4 |
) |
— |
5 |
|||||||||||||||||
Total |
$ |
43,393 |
$ |
(39,319 |
) |
$ |
— |
$ |
4,074 |
For the year ended December 31, 2011 |
$ |
7,118 |
|||||
For the year ended December 31, 2012 |
$ |
8,127 |
|||||
For the year ended December 31, 2013 |
$ |
2,597 |
2014 |
$ |
1,203 |
|||||
2015 |
761 |
||||||
2016 |
524 |
||||||
2017 |
405 |
||||||
2018 |
358 |
||||||
Thereafter |
823 |
||||||
Total |
$ |
4,074 |
Estimated Life |
December 31, |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
||||||||||||||
Land |
$ |
1,157 |
$ |
1,164 |
|||||||||||
Building and improvements |
20 – 40 |
12,296 |
12,326 |
||||||||||||
Telephone equipment |
6 – 20 |
223,466 |
226,496 |
||||||||||||
Cable television equipment |
7 |
11,267 |
11,717 |
||||||||||||
Furniture and equipment |
8 – 14 |
2,990 |
3,004 |
||||||||||||
Vehicles |
7 – 9 |
6,185 |
6,409 |
||||||||||||
Computer software equipment |
5 – 7 |
15,892 |
16,294 |
||||||||||||
Internet equipment |
5 |
3,871 |
3,884 |
||||||||||||
Total property and equipment |
277,124 |
281,294 |
|||||||||||||
Accumulated depreciation and amortization |
(218,881 |
) |
(226,832 |
) |
|||||||||||
Net property and equipment |
$ |
58,243 |
$ |
54,462 |
December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
Wholesale contracts receivable |
$ |
1,678 |
$ |
— |
||||||||
Carrier access bills receivable |
1,669 |
779 |
||||||||||
NECA receivable |
930 |
971 |
||||||||||
Receivables from Alabama Service Fund |
245 |
65 |
||||||||||
Connect America Fund receivable |
232 |
— |
||||||||||
Other miscellaneous |
582 |
235 |
||||||||||
$ |
5,336 |
$ |
2,050 |
December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
Investment in CoBank stock |
$ |
1,475 |
$ |
1,475 |
||||||||
Rental property |
372 |
347 |
||||||||||
Other miscellaneous |
72 |
73 |
||||||||||
$ |
1,919 |
$ |
1,895 |
2014 |
$ |
540 |
|||||
2015 |
479 |
||||||
2016 |
423 |
||||||
2017 |
278 |
||||||
2018 |
211 |
||||||
Thereafter |
228 |
||||||
Total |
$ |
2,159 |
December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
Second amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 4.46% at December 31, 2012. The credit facility was secured by the total assets of the subsidiary guarantors. The unpaid balance was scheduled to be due October 31, 2013 and the credit facility was amended and restated as of the Effective Date. |
$ |
162,000 |
$ |
— |
||||||||
Third amended and restated term credit facility; General Electric Capital Corporation; variable interest rate of 6.50% at December 31, 2013. The credit facility is secured by the total assets of the subsidiary guarantors. The unpaid balance is due April 30, 2016. |
— |
128,633 |
||||||||||
13% senior subordinated notes due 2019; premium amortization for the years ended December 31, 2012 and 2013 was $116 and $31, respectively. Cancelled and exchanged for new Class A common stock as of the Effective Date. |
100,490 |
— |
||||||||||
13% senior subordinated notes due 2019, held separately; interest payments were due quarterly. Cancelled and exchanged for new Class A common stock as of the Effective Date. |
8,500 |
— |
||||||||||
Total notes payable |
270,990 |
128,633 |
||||||||||
Less: current portion |
(270,990 |
) |
(7,441 |
) |
||||||||
Long-term notes payable |
$ |
— |
$ |
121,192 |
2014 |
$ |
7,441 |
|||||
2015 |
6,665 |
||||||
2016 |
114,527 |
||||||
2017 |
— |
||||||
2018 |
— |
||||||
Thereafter |
— |
||||||
Total |
$ |
128,633 |
For the Years Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
Federal income taxes |
|||||||||||||||||
Current |
$ |
(2 |
) |
$ |
54 |
$ |
210 |
||||||||||
Deferred |
(76 |
) |
(20,261 |
) |
5,528 |
||||||||||||
Total federal tax expense (benefit) |
(78 |
) |
(20,207 |
) |
5,738 |
||||||||||||
State income taxes |
|||||||||||||||||
Current |
25 |
2 |
— |
||||||||||||||
Deferred |
303 |
(4,663 |
) |
629 |
|||||||||||||
Total state tax expense (benefit) |
328 |
(4,661 |
) |
629 |
|||||||||||||
Total income tax expense (benefit) |
$ |
250 |
$ |
(24,868 |
) |
$ |
6,367 |
December 31, |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
2012 |
2013 |
|||||||||||
Deferred tax liabilities: |
||||||||||||
Amortization |
$ |
(10,130 |
) |
$ |
(12,900 |
) |
||||||
Depreciation |
(11,686 |
) |
(10,266 |
) |
||||||||
Amortized intangibles |
(839 |
) |
— |
|||||||||
Prepaid expense |
(431 |
) |
(469 |
) |
||||||||
Other |
(15 |
) |
(15 |
) |
||||||||
Total deferred tax liabilities |
$ |
(23,101 |
) |
$ |
(23,650 |
) |
||||||
Deferred tax assets: |
||||||||||||
Amortized intangibles |
$ |
— |
$ |
1,003 |
||||||||
Federal net operating loss carryforwards |
4,426 |
208 |
||||||||||
Alternative minimum credits carryforwards |
556 |
769 |
||||||||||
State net operating loss carryforwards |
769 |
409 |
||||||||||
Restructuring expense |
632 |
— |
||||||||||
Deferred compensation |
323 |
295 |
||||||||||
Advance payments |
328 |
307 |
||||||||||
Bad debt |
704 |
182 |
||||||||||
Other |
381 |
626 |
||||||||||
8,119 |
3,799 |
|||||||||||
Less: Valuation allowance |
— |
(1,288 |
) |
|||||||||
Total deferred tax assets |
$ |
8,119 |
$ |
2,511 |
For the Years Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 |
2012 |
2013 |
|||||||||||||||
Federal income tax at statutory rate |
35 |
% |
35 |
% |
35 |
% |
|||||||||||
Federal income tax provision (benefit) at statutory rate |
$ |
857 |
$ |
(53,126 |
) |
$ |
40,428 |
||||||||||
State income tax provision (benefit), net of federal income tax effects |
213 |
(3,029 |
) |
408 |
|||||||||||||
Goodwill impairment |
— |
31,419 |
— |
||||||||||||||
Cancellation of debt (non-taxable) |
— |
— |
(37,681 |
) |
|||||||||||||
Restructuring expense |
— |
— |
1,974 |
||||||||||||||
Valuation allowance |
— |
— |
1,288 |
||||||||||||||
Change in fair value of derivatives |
(782 |
) |
(85 |
) |
— |
||||||||||||
Other |
(38 |
) |
(47 |
) |
(50 |
) |
|||||||||||
Provision (benefit) for income taxes |
$ |
250 |
$ |
(24,868 |
) |
$ |
6,367 |
||||||||||
Effective income tax rate |
10.2 |
% |
16.4 |
% |
5.5 |
% |
For the Years Ended December 31, |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 (1) |
2012 (1) |
2013 |
|||||||||||||||
Weighted average number of common shares outstanding |
2,644,281 |
2,644,281 |
2,921,208 |
||||||||||||||
Net income (loss) |
$ |
2,197 |
$ |
(126,900 |
) |
$ |
109,144 |
||||||||||
Net income (loss) per common share |
$ |
0.83 |
$ |
(47.99 |
) |
$ |
37.36 |
Carrying Value |
Fair Value |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Notes Payable December 31, 2013 |
$ |
128,633 |
$ |
145,138 |
||||||||
Notes Payable December 31, 2012 |
$ |
269,661 |
$ |
171,842 |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fiscal 2012: |
||||||||||||||||||||||
Revenue |
$ |
25,374 |
$ |
24,714 |
$ |
24,428 |
$ |
23,888 |
||||||||||||||
Operating income (loss) |
$ |
6,617 |
$ |
(148,061 |
) |
$ |
6,487 |
$ |
5,563 |
|||||||||||||
Net income (loss) |
$ |
818 |
$ |
(128,011 |
) |
$ |
316 |
$ |
(23 |
) |
||||||||||||
Net income (loss) per common share(1) |
$ |
0.06 |
$ |
(48.84 |
) |
$ |
0.12 |
$ |
(.01 |
) |
||||||||||||
Fiscal 2013: |
||||||||||||||||||||||
Revenue |
$ |
20,988 |
$ |
19,666 |
$ |
18,980 |
$ |
19,338 |
||||||||||||||
Operating income (loss) |
$ |
4,889 |
$ |
5,121 |
$ |
4,301 |
$ |
4,341 |
||||||||||||||
Net income (loss) |
$ |
(1,774 |
) |
$ |
109,648 |
$ |
1,472 |
$ |
(202 |
) |
||||||||||||
Net income (loss) per common share |
$ |
(0.13 |
) |
$ |
38.80 |
$ |
0.47 |
$ |
(0.07 |
) |
Page |
|||||||
---|---|---|---|---|---|---|---|
Exhibit No. |
Description |
||||
---|---|---|---|---|---|
3.1 |
Amended and Restated Certificate of Incorporation of Otelco Inc. (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 8-A (File No. 001-32352) filed on May 24, 2013 and incorporated herein by reference) |
||||
3.2 |
Fourth Amended and Restated By-laws of Otelco Inc. (filed as Exhibit 3.1 to the Company’s Registration Statement on Form 8-A (File No. 001-32352) filed on May 24, 2013 and incorporated herein by reference) |
||||
4.1 |
Registration Agreement, dated as of May 24, 2013, among Otelco Inc. and each of the persons identified as a securityholder on the schedule of securityholders attached thereto (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on May 24, 2013 and incorporated herein by reference) |
||||
4.2 |
Stockholders’ Agreement, dated as of May 24, 2013, by and among Otelco Inc., GE Capital Equity Investments, Inc., CoBank, ACB, Raymond James Bank, N.A., Union Bank, N.A., Webster Bank, National Association and CIBC Inc. (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on May 24, 2013 and incorporated herein by reference) |
||||
4.3 |
Form of stock certificate for Class A common stock, $0.01 par value per share (filed as Exhibit 4.1 to the Company’s Registration Statement on Form 8-A (File No. 001-32352) filed on May 24, 2013 and incorporated herein by reference) |
||||
4.4 |
Form of stock certificate for Class B common stock, $0.01 par value per share (filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K filed on May 24, 2013 and incorporated herein by reference) |
||||
10.1 |
Amended and Restated Employment Agreement, dated as of March 11, 2009, between Otelco Inc. and Michael D. Weaver (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 12, 2009 and incorporated herein by reference)* |
||||
10.2 |
Amended and Restated Employment Agreement, dated as of March 11, 2009, between Otelco Inc. and Curtis L. Garner, Jr. (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on March 11, 2009 and incorporated herein by reference)* |
||||
10.3 |
Employment Agreement, dated as of August 24, 2006, between Otelco Inc. and Dennis Andrews (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 29, 2006 and incorporated herein by reference)* |
Exhibit No. |
Description |
||||
---|---|---|---|---|---|
10.4 |
Employment Agreement, dated as of November 15, 2006, between Otelco Inc. and Jerry C. Boles (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on November 15, 2006 and incorporated herein by reference)* |
||||
10.5 |
Third Amended and Restated Credit Agreement, dated as of May 24, 2013, among Otelco Inc., as borrower, the other credit parties signatory thereto, as credit parties, the lenders signatory thereto from time to time, as lenders, and General Electric Capital Corporation, as agent (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 24, 2013 and incorporated herein by reference) |
||||
10.6 |
Amendment, dated as of December 17, 2008, to the Employment Agreement, dated as of August 24, 2006, between Otelco Inc. and Dennis Andrews (filed as Exhibit 10.10 to the Company’s Annual Report on Form 10-K filed on March 11, 2009 and incorporated herein by reference)* |
||||
10.7 |
Amendment, dated as of December 17, 2008, to the Employment Agreement, dated as of November 15, 2006, between Otelco Inc. and Jerry C. Boles (filed as Exhibit 10.11 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and incorporated herein by reference)* |
||||
10.8 |
Amended and Restated Employment Agreement, dated as of April 27, 2009, between Otelco Inc. and Robert Souza (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 28, 2009 and incorporated herein by reference)* |
||||
10.9 |
Executive Long Term Incentive Plan approved May 12, 2009, effective January 1, 2009 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 14, 2009 and incorporated herein by reference)* |
||||
10.10 |
Amendment, dated as of March 5, 2010, to the Amended and Restated Employment Agreement, dated as of March 11, 2009, between Otelco Inc. and Michael D. Weaver (filed as Exhibit 10.13 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference)* |
||||
10.11 |
Amendment, dated as of March 5, 2010, to the Amended and Restated Employment Agreement, dated as of March 11, 2009, between Otelco Inc. and Curtis L. Garner, Jr. (filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference)* |
||||
10.12 |
Second Amendment, dated as of March 4, 2011, to the Employment Agreement, dated as of August 24, 2006, between Otelco Inc. and Dennis Andrews, as previously amended on December 17, 2008 (filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and incorporated herein by reference)* |
||||
10.13 |
Second Amendment, dated as of March 4, 2011, to the Employment Agreement, dated as of November 15, 2006, between Otelco Inc. and Jerry C. Boles, as previously amended on December 17, 2008 (filed as Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and incorporated herein by reference)* |
||||
10.14 |
Amendment, dated as of March 4, 2011, to the Amended and Restated Employment Agreement, dated as of April 27, 2009, between Otelco Inc. and Robert Souza (filed as Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and incorporated herein by reference)* |
||||
10.15 |
Amended and Restated Employment Agreement, dated as of April 10, 2009, between Otelco Inc. and Edwin D. Tisdale (filed as Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and incorporated herein by reference)* |
||||
10.16 |
Amendment, dated as of March 4, 2011, to the Amended and Restated Employment Agreement, dated as of April 10, 2009, between Otelco Inc. and Edwin D. Tisdale (filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and incorporated herein by reference)* |
Exhibit No. |
Description |
||||
---|---|---|---|---|---|
10.17 |
Employment Agreement, dated as of March 4, 2013, between Otelco Inc. and E. Todd Wessing* |
||||
10.18 |
First Amendment to Third Amended and Restated Credit Agreement, dated as of August 8, 2013, by and among Otelco Inc., the other persons party thereto that are designated as “Credit Parties” on the signature pages thereof, General Electric Capital Corporation, as agent and as a lender, and the other lenders signatory thereto (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013 and incorporated herein by reference) |
||||
12.1 |
Computation of Ratio of Earnings to Fixed Charges |
||||
21.1 |
List of subsidiaries of Otelco Inc. |
||||
31.1 |
Certificate pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 of the Chief Executive Officer |
||||
31.2 |
Certificate pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 of the Chief Financial Officer |
||||
32.1 |
Certificate pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer |
||||
32.2 |
Certificate pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer |
||||
101 |
The following information from the Company’s annual report on Form 10-K for the year ended December 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Stockholders’ Deficit; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements |
OTELCO INC. |
|||||
By: |
/s/ Michael D. Weaver |
||||
Michael D. Weaver President and Chief Executive Officer |
Signature |
Title |
Date |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
/s/ Michael D. Weaver |
President, Chief Executive Officer and Director (Principal Executive Officer) |
March 14, 2014 |
|||||||||
/s/ Curtis L. Garner, Jr. |
Chief Financial Officer (Principal Financial and Accounting Officer) |
March 14, 2014 |
|||||||||
/s/ Stephen P. McCall |
Chairman and Director |
March 14, 2014 |
|||||||||
/s/ Norman C. Frost |
Director |
March 14, 2014 |
|||||||||
/s/ Howard J. Haug |
Director |
March 14, 2014 |
|||||||||
/s/ Andrew J. Meyers |
Director |
March 14, 2014 |
|||||||||
/s/ Brian A. Ross |
Director |
March 14, 2014 |
|||||||||
/s/ Gary L. Sugarman |
Director |
March 14, 2014 |