Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-09881 | |
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS COMPANY | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1162807 | |
Entity Address, Address Line One | 500 Shentel Way | |
Entity Address, City or Town | Edinburg | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22824 | |
City Area Code | 540 | |
Local Phone Number | 984-4141 | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Trading Symbol | SHEN | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 49,842,000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000354963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 120,232 | $ 101,651 |
Accounts receivable, net of allowance for doubtful accounts of $410 and $533, respectively | 61,526 | 63,541 |
Income taxes receivable | 8,157 | 10,306 |
Inventory, net of allowances of $71 and $66, respectively | 7,071 | 5,728 |
Prepaid expenses and other | 60,923 | 60,527 |
Total current assets | 257,909 | 241,753 |
Investments | 12,011 | 12,388 |
Property, plant and equipment, net | 695,920 | 701,514 |
Intangible assets, net | 299,458 | 314,147 |
Goodwill | 149,070 | 149,070 |
Operating lease right-of-use assets | 382,973 | 392,589 |
Deferred charges and other assets | 53,436 | 53,352 |
Total assets | 1,850,777 | 1,864,813 |
Current liabilities: | ||
Current maturities of long-term debt, net of unamortized loan fees | 31,672 | 31,650 |
Accounts payable | 30,384 | 40,295 |
Advanced billings and customer deposits | 8,414 | 8,358 |
Accrued compensation | 5,787 | 10,075 |
Current operating lease liabilities | 44,204 | 42,567 |
Accrued liabilities and other | 19,183 | 14,391 |
Total current liabilities | 139,644 | 147,336 |
Long-term debt, less current maturities, net of unamortized loan fees | 680,531 | 688,464 |
Other long-term liabilities: | ||
Deferred income taxes | 137,674 | 137,567 |
Asset retirement obligations | 37,422 | 36,914 |
Benefit plan obligations | 11,980 | 12,675 |
Noncurrent operating lease liabilities | 343,723 | 352,439 |
Other liabilities | 19,153 | 16,990 |
Total other long-term liabilities | 549,952 | 556,585 |
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 49,842 and 49,671 issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 0 | 0 |
Additional paid in capital | 43,158 | 42,110 |
Retained earnings | 443,290 | 430,010 |
Accumulated other comprehensive (loss) income, net of taxes | (5,798) | 308 |
Total shareholders’ equity | 480,650 | 472,428 |
Total liabilities and shareholders’ equity | $ 1,850,777 | $ 1,864,813 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 410 | $ 533 |
Inventory reserves | $ 71 | $ 66 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000,000 | 96,000,000 |
Common stock, shares issued (in shares) | 49,842,000 | 49,671,000 |
Common stock, shares outstanding (in shares) | 49,842,000 | 49,671,000 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 153,188 | $ 158,843 |
Operating expenses | ||
Selling, general and administrative | 30,991 | 28,722 |
Depreciation and amortization | 36,911 | 41,179 |
Total operating expenses | 130,138 | 134,056 |
Operating income | 23,050 | 24,787 |
Other income (expense): | ||
Interest expense | (6,211) | (7,954) |
Other | 733 | 1,287 |
Income before income taxes | 17,572 | 18,120 |
Income tax expense | 4,292 | 4,210 |
Net income | 13,280 | 13,910 |
Other comprehensive income: | ||
Unrealized loss on interest rate hedge, net of tax | (6,106) | (2,728) |
Comprehensive income | $ 7,174 | $ 11,182 |
Net income per share, basic and diluted: | ||
Basic net income per share (in dollars per share) | $ 0.27 | $ 0.28 |
Diluted net income per share (in dollars per share) | $ 0.27 | $ 0.28 |
Weighted average shares outstanding, basic (in shares) | 49,888 | 49,775 |
Weighted average shares outstanding, diluted (in shares) | 50,036 | 50,115 |
Service revenue and other | ||
Revenue: | ||
Total revenue | $ 140,188 | $ 143,231 |
Equipment revenue | ||
Revenue: | ||
Total revenue | 13,000 | 15,612 |
Services | ||
Operating expenses | ||
Cost of services and cost of goods sold | 49,565 | 49,518 |
Products | ||
Operating expenses | ||
Cost of services and cost of goods sold | $ 12,671 | $ 14,637 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2018 | 49,630,000 | ||||
Balance at Dec. 31, 2018 | $ 444,232 | $ 47,456 | $ 388,496 | $ 8,280 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,910 | 13,910 | |||
Other comprehensive gain (loss), net of tax | (2,728) | (2,728) | |||
Stock based compensation (in shares) | 167,000 | ||||
Stock based compensation | 1,802 | 1,802 | |||
Stock options exercised (in shares) | 28,000 | ||||
Stock options exercised | 175 | 175 | |||
Common stock issued | 8 | 8 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (57,000) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (2,800) | (2,800) | |||
Common stock issued to acquire non-controlling interest in nTelos | 76,000 | ||||
Balance (in shares) at Mar. 31, 2019 | 49,844,000 | ||||
Balance at Mar. 31, 2019 | 454,599 | 46,641 | 402,406 | 5,552 | |
Balance (in shares) at Dec. 31, 2018 | 49,630,000 | ||||
Balance at Dec. 31, 2018 | $ 444,232 | 47,456 | 388,496 | 8,280 | |
Balance (in shares) at Dec. 31, 2019 | 49,671,000 | 49,671,000 | |||
Balance at Dec. 31, 2019 | $ 472,428 | 42,110 | 430,010 | 308 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,280 | 13,280 | |||
Other comprehensive gain (loss), net of tax | (6,106) | (6,106) | |||
Stock based compensation (in shares) | 137,000 | ||||
Stock based compensation | 2,985 | 2,985 | |||
Common stock issued | 8 | 8 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (42,000) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (1,945) | (1,945) | |||
Common stock issued to acquire non-controlling interest in nTelos | 76,000 | ||||
Balance (in shares) at Mar. 31, 2020 | 49,842,000 | 49,842,000 | |||
Balance at Mar. 31, 2020 | $ 480,650 | $ 43,158 | $ 443,290 | $ (5,798) |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 13,280 | $ 13,910 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 32,468 | 35,520 | |
Amortization of intangible assets | 4,868 | 5,659 | |
Accretion of asset retirement obligations | 404 | 350 | |
Bad debt expense | 205 | 367 | |
Stock based compensation expense, net of amount capitalized | 2,905 | 1,714 | |
Deferred income taxes | 2,135 | (3,378) | |
Gain from patronage and investments | (339) | (1,140) | |
Amortization of long-term debt issuance costs | 674 | 963 | |
Changes in assets and liabilities: | |||
Accounts receivable | 2,543 | (3,127) | |
Inventory, net | (1,343) | (1,975) | |
Current income taxes | 2,149 | 7,588 | |
Operating lease right-of-use assets | 12,939 | 7,779 | |
Waived management fee | 9,798 | 9,628 | |
Other assets | (3,489) | (1,460) | |
Accounts payable | (4,400) | 4,641 | |
Lease liabilities | (10,402) | (9,662) | |
Other deferrals and accruals | (3,287) | (5,714) | |
Net cash provided by operating activities | 61,108 | 61,663 | |
Cash flows used in investing activities: | |||
Capital expenditures | (32,299) | (44,420) | |
Cash disbursed for acquisitions | 0 | (10,000) | |
Proceeds from sale of assets and other | 274 | 45 | |
Net cash used in investing activities | (32,025) | (54,375) | |
Cash flows used in financing activities: | |||
Principal payments on long-term debt | (8,530) | (19,889) | |
Taxes paid for equity award issuances | (1,945) | (2,698) | |
Other | (27) | 72 | |
Net cash used in financing activities | (10,502) | (22,515) | |
Net increase (decrease) in cash and cash equivalents | 18,581 | (15,227) | |
Cash and cash equivalents, beginning of period | 101,651 | 85,086 | $ 85,086 |
Cash and cash equivalents, end of period | $ 120,232 | $ 69,859 | $ 101,651 |
Basis of Presentation and Other
Basis of Presentation and Other Information | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2019 . The preparation of the unaudited interim consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies at the date of the unaudited interim consolidated financial statements. These estimates are inherently subject to judgment and actual results could differ. T-Mobile Acquisition of Sprint On April 1, 2020, T-Mobile US, Inc. (“T-Mobile”) announced the completion of its business combination with Sprint Corporation (“Sprint”) and subsequently delivered to the Company a notice of Network Technology Conversion, Brand Conversion and Combination Conversion (a “Conversion Notice”) pursuant to the terms of our affiliate agreement. The affiliate agreement provides for a 90 -day period following receipt of the Conversion Notice for the parties to negotiate mutually agreeable terms and conditions under which the Company would continue as an affiliate of T-Mobile. The affiliate agreement further provides that, if T-Mobile and the Company have not negotiated a mutually acceptable agreement within the 90 -day period, then T-Mobile would have a period of 60 days thereafter to exercise an option to purchase the assets of our Wireless operations for 90% of the "Entire Business Value," (as defined under our affiliate agreement). If T-Mobile does not exercise its purchase option, the Company would then have a 60 -day period to exercise an option to purchase the legacy T-Mobile network and subscribers in our service area. If the Company does not exercise its purchase option, T-Mobile must sell or decommission its legacy network and customers in our service area. The outcome of these proceedings could significantly impact our business operations and financial statements. COVID-19 On March 11, 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic. While we do not operate in the densely populated urban markets that have been most-affected by the pandemic, our postpaid gross additions, equipment revenue, and cost of goods sold decreased as stay-at-home directives led to the temporary closure of approximately 40% of our Sprint-branded retail stores in mid-March. Our wireless and broadband internet services are essential during a time of social distancing. Nonetheless, national unemployment rates increased markedly in April. Sprint also adopted the Keep Americans Connected pledge and T-Mobile chose to change subscriber collection policies following its April 1, 2020 acquisition of Sprint. It is reasonably possible that these risks and uncertainties could impact the collectability of our accounts receivable and revenue. It is also reasonably possible that they could impact the measurement of our wireless segment’s contract asset, which is reduced by an estimated refund obligation for amounts that T-Mobile is later unable to collect from its subscribers. We update that estimate based upon trends in our refund experience. To-date, our collection experience and expected credit losses have not been materially affected. We will continue to monitor the impacts of this unprecedented pandemic and will prospectively revise our estimates as appropriate. We do not currently anticipate any material impairments of our long-lived assets or of our indefinite-lived intangible assets as a result of COVID-19. Revision of Prior Period Financial Statements In connection with the preparation of our unaudited condensed consolidated financial statements for the three months ended March 31, 2020, we determined that certain errors existed in our previously issued financial statements. Specifically: • Prepaid and other assets, as of December 31, 2019, were understated by $2.7 million , deferred tax liabilities were understated by $0.7 million , and retained earnings were understated by $2.0 million as the result of a failure to properly account for handsets that were utilized as demo phones in certain wireless retail stores within our area of operation. All of the impact to retained earnings is attributable to 2017 and prior years. • Property, plant and equipment, net, and deferred income tax liabilities as of December 31, 2019 were understated by $1.4 million and $0.4 million , respectively. Depreciation expense was overstated by $1.4 million for the year and quarter ended December 31, 2019. Income tax expense and net income were understated by $0.4 million and $1.0 million , respectively, for the year and quarter ended December 31, 2019. We evaluated these errors under the U.S. Securities and Exchange Commission's ("SEC's") authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we have determined that the impact of these errors on our prior period consolidated financial statements is immaterial. However, since the correction of these errors in the first quarter of 2020 could have become material to our results of operations for the year ending December 31, 2020, we revised our prior period financial statements to correct these errors herein. For the year and quarter ended December 31, 2019, the correction of these errors resulted in a $0.02 increase in both basic and diluted earnings per share. Adoption of New Accounting Principles There have been no developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures, from those disclosed in the Company's 2019 Annual Report on Form 10-K, that would be expected to impact the Company except for the following: The Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses ("ASC 326"): Measurement of Credit Losses on Financial Instruments , as of January 1, 2020 using the modified retrospective transition method. ASC 326 requires the application of a current expected credit loss (“CECL”) impairment model to financial assets measured at amortized cost including trade accounts receivable, net investments in leases, and certain off-balance-sheet credit exposures. Under the CECL model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. Furthermore, the CECL model requires financial assets with similar risk characteristics to be analyzed on a collective basis. There was no significant impact to condensed consolidated financial statements upon adoption. The Company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350"): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Refer to Note 13 , Segment Reporting , for a summary of our revenue streams, which are discussed further below. Wireless Segment Revenue Under our affiliate agreement with Sprint, we have historically earned and recognized monthly revenue of $1.5 million for providing service to Sprint customers who pass through our network area ("travel revenue"). While we continue to provide these services to Sprint, the agreed upon payments were suspended by Sprint on April 30, 2019. Accordingly, we have ceased recognizing revenue for the services provided after that date until a new prospective fee can be agreed. We have triggered the final dispute resolution option with Sprint which we expect will lead to a resolution for travel fee revenue in the second quarter of 2020. Below is a summary of the Wireless segment's contract asset: Three Months Ended (in thousands) 2020 2019 Beginning Balance $ 84,663 $ 65,674 Contract payments 18,245 18,151 Contract amortization against revenue (16,710 ) (13,454 ) Ending Balance $ 86,198 $ 70,371 Our Wireless contract asset is reduced by an estimated obligation to refund amounts that Sprint is later unable to collect from its subscribers. This refund obligation totaled $7.0 million at both March 31, 2020 and December 31, 2019 . Broadband Segment Revenue Below is a summary of the Broadband segment's capitalized contract acquisition costs: Three Months Ended (in thousands) 2020 2019 Beginning Balance $ 11,005 $ 10,091 Contract payments 1,685 1,699 Contract amortization (1,027 ) (1,381 ) Ending Balance $ 11,663 $ 10,409 Future performance obligations On March 31, 2020 , the Company had approximately $3.2 million allocated to unsatisfied performance obligations that will be satisfied at the rate of approximately $0.8 million |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) March 31, 2020 December 31, 2019 SERP Investments at fair value $ 1,706 $ 2,278 Cost method investments 9,739 9,497 Equity method investments 566 613 Total investments $ 12,011 $ 12,388 SERP Investments at fair value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710 Compensation . Changes to the investments fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments: Our investment in CoBank’s Class A common stock represented substantially all of our cost method investments with a balance of $9.0 million and $8.7 million at March 31, 2020 and December 31, 2019 , respectively. We recognized approximately $1.0 million and $0.9 million of patronage income in Other income (expense) in the three months ended March 31, 2020 and 2019 , respectively. Historically, approximately 75% of the patronage distributions were in cash and 25% in equity. Equity Method Investments: At March 31, 2020 , the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.2 million from providing service to ValleyNet during both of the three months ended March 31, 2020 and 2019 . We recognized cost of service of $0.8 million and $0.7 million for the use of ValleyNet’s network during both of the three months ended March 31, 2020 and 2019 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 7,143 $ 6,976 Buildings and structures 10 - 40 years 238,728 232,730 Cable and fiber 15 - 40 years 348,658 334,260 Equipment and software 3 - 20 years 870,089 867,898 Plant in service 1,464,618 1,441,864 Plant under construction 59,097 56,827 Total property, plant and equipment 1,523,715 1,498,691 Less: accumulated amortization and depreciation 827,795 797,177 Property, plant and equipment, net $ 695,920 $ 701,514 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets There were no changes to goodwill during the three months ended March 31, 2020 . Other intangible assets consisted of the following: March 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 13,839 — 13,839 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 78,314 — 78,314 Finite-lived intangibles: Sprint affiliate contract expansion - Wireless 455,305 (241,231 ) 214,074 455,305 (226,712 ) 228,593 FCC spectrum licenses 4,659 (160 ) 4,499 4,659 (97 ) 4,562 Acquired subscribers - Cable 28,065 (25,700 ) 2,365 28,065 (25,600 ) 2,465 Other intangibles 463 (257 ) 206 463 (250 ) 213 Total finite-lived intangibles 488,492 (267,348 ) 221,144 488,492 (252,659 ) 235,833 Total intangible assets $ 566,806 $ (267,348 ) $ 299,458 $ 566,806 $ (252,659 ) $ 314,147 We acquired Big Sandy Broadband, Inc. (“Big Sandy”) on February 28, 2019. The $10 million acquisition price was allocated as follows within our broadband segment: $4.6 million of property, plant and equipment; $2.8 million of subscriber relationships; and $2.6 million of goodwill. In 2016, we acquired nTelos Holdings Corp. and immediately transferred certain of the acquired assets to Sprint in an interrelated nonmonetary exchange. In the exchange, we received a corresponding expansion of our Sprint Affiliate Area, future billings associated with Sprint subscribers already in that expanded area, and an increase in the price that Sprint would pay to buy our Wireless asset group in the event that either party chooses not to renew the affiliate agreement. Sprint also agreed to waive up to $4.2 million of our monthly management fee, not to exceed $255.6 million in total, over a multi-year period. We accounted for these collective rights as an affiliate contract expansion (“ACE”) intangible, which is amortized over the expected benefit period and further reduced as management fees are waived by Sprint. We realized management fee waivers of $9.8 million and $9.6 million during the three months ended March 31, 2020 and 2019 , respectively, and $147.0 million since the date of the business combination. During 2017 and 2018, we entered into purchase agreements with Sprint to further expand our affiliate territory to include areas around Parkersburg, West Virginia, and Richmond, Virginia, respectively. The relevant portion of these payments were also capitalized as ACE intangible assets. Amounts paid in connection with the acquisition of a business are presented as amortization expense in our income statement. Amounts paid to Sprint outside of a business combination are accounted for as consideration paid to a customer with amortization presented as a reduction of Service and other revenue in our unaudited condensed consolidated statements of comprehensive income. Amortization of intangible assets was $4.9 million and $5.7 million for the three months ended March 31, 2020 and 2019 , respectively. |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Assets and Accrued Liabilities | Other Assets and Accrued Liabilities Prepaid expenses and other, classified as current assets, included the following: (in thousands) March 31, December 31, Wireless contract asset $ 46,552 $ 44,844 Broadband contract acquisition and fulfillment costs 4,029 4,898 Prepaid maintenance expenses 3,252 3,329 Interest rate swaps — 1,382 Other 7,090 6,074 Prepaid expenses and other $ 60,923 $ 60,527 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, 2019 Wireless contract asset $ 39,646 $ 39,819 Broadband contract acquisition and fulfillment costs 7,634 6,107 Interest rate swaps — 1,252 Prepaid expenses and other 6,156 6,174 Deferred charges and other assets $ 53,436 $ 53,352 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, 2020 December 31, 2019 Sales and property taxes payable $ 5,259 $ 3,789 Accrued programming costs 3,053 3,023 Interest rate swaps 2,731 — Asset retirement obligations 137 148 Financing leases 97 94 FCC spectrum license obligations 28 105 Other current liabilities 7,878 7,232 Accrued liabilities and other $ 19,183 $ 14,391 Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, 2019 Noncurrent portion of deferred lease revenue $ 12,291 $ 12,449 FCC spectrum license obligations 1,703 1,699 Noncurrent portion of financing leases 1,543 1,591 Interest rate swaps 2,769 — Other 847 1,251 Other liabilities $ 19,153 $ 16,990 Market expectations of the projected London Interbank Offering Rate (LIBOR) decreased significantly during the first quarter of 2020 , which drove the fair value of our interest rate swaps to a liability. Refer to Note 9 , Derivatives and Hedging for more information. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases At March 31, 2020 , our operating leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 4.3% . Our finance leases had a weighted average remaining lease term of fifteen years and a weighted average discount rate of 5.1% . During the three months ended March 31, 2020 and 2019 , we recognized $17.8 million and $16.9 million of operating lease expense, respectively. We recognized $0.1 million of interest and depreciation expense on finance leases during the three months ended March 31, 2020 and 2019 . Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $15.5 million and $14.7 million of operating lease payments during the three months ended March 31, 2020 and 2019 , respectively. We also obtained $3.3 million and $4.6 million of leased assets in exchange for new operating lease liabilities during the three months ended March 31, 2020 and 2019 , respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2020 : (in thousands) Operating Leases Finance Leases Total 2020 $ 45,222 $ 108 $ 45,330 2021 66,042 174 66,216 2022 64,256 174 64,430 2023 60,770 174 60,944 2024 56,105 174 56,279 2025 and thereafter 191,726 1,532 193,258 Total lease payments 484,121 2,336 486,457 Less: Interest 96,194 696 96,890 Present value of lease liabilities $ 387,927 $ 1,640 $ 389,567 We recognized $2.1 million and $2.0 million of operating lease revenue during the three months ended March 31, 2020 and 2019 , respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the unaudited condensed consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at March 31, 2020 : (in thousands) Operating Leases 2020 $ 5,527 2021 5,775 2022 4,742 2023 3,112 2024 1,915 2025 and thereafter 4,192 Total $ 25,263 |
Leases | Leases At March 31, 2020 , our operating leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 4.3% . Our finance leases had a weighted average remaining lease term of fifteen years and a weighted average discount rate of 5.1% . During the three months ended March 31, 2020 and 2019 , we recognized $17.8 million and $16.9 million of operating lease expense, respectively. We recognized $0.1 million of interest and depreciation expense on finance leases during the three months ended March 31, 2020 and 2019 . Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $15.5 million and $14.7 million of operating lease payments during the three months ended March 31, 2020 and 2019 , respectively. We also obtained $3.3 million and $4.6 million of leased assets in exchange for new operating lease liabilities during the three months ended March 31, 2020 and 2019 , respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2020 : (in thousands) Operating Leases Finance Leases Total 2020 $ 45,222 $ 108 $ 45,330 2021 66,042 174 66,216 2022 64,256 174 64,430 2023 60,770 174 60,944 2024 56,105 174 56,279 2025 and thereafter 191,726 1,532 193,258 Total lease payments 484,121 2,336 486,457 Less: Interest 96,194 696 96,890 Present value of lease liabilities $ 387,927 $ 1,640 $ 389,567 We recognized $2.1 million and $2.0 million of operating lease revenue during the three months ended March 31, 2020 and 2019 , respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the unaudited condensed consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at March 31, 2020 : (in thousands) Operating Leases 2020 $ 5,527 2021 5,775 2022 4,742 2023 3,112 2024 1,915 2025 and thereafter 4,192 Total $ 25,263 |
Leases | Leases At March 31, 2020 , our operating leases had a weighted average remaining lease term of nine years and a weighted average discount rate of 4.3% . Our finance leases had a weighted average remaining lease term of fifteen years and a weighted average discount rate of 5.1% . During the three months ended March 31, 2020 and 2019 , we recognized $17.8 million and $16.9 million of operating lease expense, respectively. We recognized $0.1 million of interest and depreciation expense on finance leases during the three months ended March 31, 2020 and 2019 . Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $15.5 million and $14.7 million of operating lease payments during the three months ended March 31, 2020 and 2019 , respectively. We also obtained $3.3 million and $4.6 million of leased assets in exchange for new operating lease liabilities during the three months ended March 31, 2020 and 2019 , respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2020 : (in thousands) Operating Leases Finance Leases Total 2020 $ 45,222 $ 108 $ 45,330 2021 66,042 174 66,216 2022 64,256 174 64,430 2023 60,770 174 60,944 2024 56,105 174 56,279 2025 and thereafter 191,726 1,532 193,258 Total lease payments 484,121 2,336 486,457 Less: Interest 96,194 696 96,890 Present value of lease liabilities $ 387,927 $ 1,640 $ 389,567 We recognized $2.1 million and $2.0 million of operating lease revenue during the three months ended March 31, 2020 and 2019 , respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the unaudited condensed consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at March 31, 2020 : (in thousands) Operating Leases 2020 $ 5,527 2021 5,775 2022 4,742 2023 3,112 2024 1,915 2025 and thereafter 4,192 Total $ 25,263 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Our syndicated Credit Agreement includes a $75 million , five -year undrawn revolving credit facility, as well as the following outstanding term loans: (in thousands) March 31, December 31, Term loan A-1 $ 251,288 $ 258,571 Term loan A-2 472,221 473,469 723,509 732,040 Less: unamortized loan fees 11,306 11,926 Total debt, net of unamortized loan fees $ 712,203 $ 720,114 Term Loan A-1 bears interest at one-month LIBOR plus a margin of 1.50% , while Term Loan A-2 bears interest at one-month LIBOR plus a margin of 1.75% . LIBOR resets monthly. Our cash payments for interest were $5.8 million and $7.2 million during the three months ended March 31, 2020 and 2019 , respectively. As shown below, as of March 31, 2020 , the Company was in compliance with the financial covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.41 3.25 or Lower Debt service coverage ratio 5.48 2.00 or Higher Minimum liquidity balance (in millions) $ 195.0 $25.0 or Higher |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The Company's interest rate swaps are pay-fixed ( 1.16% ), receive-variable (one month LIBOR) that hedged approximately 45.4% of outstanding debt with outstanding notional amounts totaling $328.7 and $339.8 million March 31, 2020 and December 31, 2019 , respectively. The fair value of these instruments was estimated using an income approach and observable market inputs. The hedge was determined to be highly effective and therefore all of the change in its fair value was recognized through Other comprehensive income. During the three months ended March 31, 2020 the fair market value decreased by $8.1 million due to a decline in the one month LIBOR. They were presented as follows: (in thousands) March 31, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ — $ 1,382 Deferred charges and other assets, net — 1,252 Accrued liabilities and other 2,731 — Other liabilities 2,769 — Total derivatives designated as hedging instruments $ 5,500 $ 2,634 The table below summarizes changes in accumulated other comprehensive income (loss) by component: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2019 $ 2,634 $ (2,326 ) $ 308 Net change in unrealized gain (loss) (7,706 ) 1,921 (5,785 ) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense (428 ) 107 (321 ) Net current period other comprehensive income (loss) (8,134 ) 2,028 (6,106 ) Balance as of March 31, 2020 $ (5,500 ) $ (298 ) $ (5,798 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal income tax returns and various state income tax returns. The Company is not subject to any state or federal income tax audits as of March 31, 2020 . The Company's returns are generally open to examination from 2016 forward and the net operating losses acquired in the acquisition of nTelos are open to examination from 2002 forward. The Company’s effective tax rate for the three months ended March 31, 2020 was approximately 24.4% , as compared with approximately 23.2% for the three months ended March 31, 2019 . The Company had no significant cash payments or refunds for income taxes during the three months ended March 31, 2020 and 2019. |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | During the three months ended March 31, 2020, the Company granted approximately 70 thousand restricted stock units (RSUs) to employees and approximately 14 thousand RSUs to members of the board of directors, at a market price of $48.47 per award. Under the terms of the award agreements, the RSUs granted to employees vest in fourths on the anniversary date of the grants through 2024. The RSUs granted to the members of the board of directors vest fully on the first anniversary of the grant date. Additionally, approximately 40 thousand Relative Total Shareholder Return (“RTSR”) awards were granted to employees at a value of $56.32 per award. Pursuant to the terms of the RTSR awards, the Company’s stock performance over a three-year period, ending December 31, 2022, will be compared to a group of peer companies, and the actual number of shares to be issued will be determined based upon the performance of the Company’s stock as compared with that of the peer group. The actual number of shares to be issued ranges from 0 shares (if the Company’s stock performance is in the bottom 25% of the peer group) to 150% of the awards granted (if the Company’s stock performance is in the top 25% of the peer group). The Company's stock based compensation award vesting is subject to requirements relating to continued employment with the Company through the service or performance periods, and to special vesting provisions in case of a change of control, death, disability or retirement. We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) 2020 2019 Calculation of net income per share: Net income $ 13,280 $ 13,910 Basic weighted average shares outstanding 49,888 49,775 Basic net income per share $ 0.27 $ 0.28 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,888 49,775 Effect from dilutive shares and options outstanding 148 340 Diluted weighted average shares outstanding 50,036 50,115 Diluted net income per share $ 0.27 $ 0.28 There were fewer than 125 thousand anti-dilutive awards outstanding during the three months ended March 31, 2020 and 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are committed to make payments to satisfy our lease liabilities and long-term debt. The scheduled payments under those obligations are summarized in the respective notes above. We are also committed to make annual payments of approximately $108.0 thousand on our FCC spectrum license obligation through 2039. The Company is subject to claims and legal actions that may arise in the ordinary course of business. The Company does not believe that any of these pending claims or legal actions are either probable or reasonably possible of a material loss. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Three Months Ended March 31, 2020 : (in thousands) Wireless Broadband Tower Corporate & Eliminations Consolidated External revenue Postpaid $ 74,928 $ — $ — $ — $ 74,928 Prepaid 13,109 — — — 13,109 Tower lease — — 1,797 — 1,797 Cable, residential and SMB (1) — 34,943 — — 34,943 Fiber, enterprise and wholesale — 5,488 — — 5,488 Rural local exchange carrier — 4,756 — — 4,756 Travel, installation, and other 3,351 1,816 — — 5,167 Service revenue and other 91,388 47,003 1,797 — 140,188 Equipment 12,750 250 — — 13,000 Total external revenue 104,138 47,253 1,797 — 153,188 Revenue from other segments — 2,533 1,933 (4,466 ) — Total revenue 104,138 49,786 3,730 (4,466 ) 153,188 Operating expenses Cost of services 33,439 19,243 939 (4,056 ) 49,565 Cost of goods sold 12,528 143 — — 12,671 Selling, general and administrative 9,428 9,499 526 11,538 30,991 Depreciation and amortization 25,299 10,871 470 271 36,911 Total operating expenses 80,694 39,756 1,935 7,753 130,138 Operating income (loss) $ 23,444 $ 10,030 $ 1,795 $ (12,219 ) $ 23,050 _______________________________________________________ (1) SMB refers to Small and Medium Businesses. Three Months Ended March 31, 2019 : (in thousands) Wireless Broadband Tower Corporate & Eliminations Consolidated External revenue Postpaid $ 76,182 $ — $ — $ — $ 76,182 Prepaid 13,130 — — — 13,130 Tower lease — — 1,763 — 1,763 Cable, residential and SMB — 32,426 — — 32,426 Fiber, enterprise and wholesale — 4,828 — — 4,828 Rural local exchange carrier — 5,238 — — 5,238 Travel, installation, and other 8,018 1,646 — — 9,664 Service revenue and other 97,330 44,138 1,763 — 143,231 Equipment 15,291 321 — — 15,612 Total external revenue 112,621 44,459 1,763 — 158,843 Revenue from other segments — 2,422 1,270 (3,692 ) — Total revenue 112,621 46,881 3,033 (3,692 ) 158,843 Operating expenses Cost of services 32,532 19,061 946 (3,021 ) 49,518 Cost of goods sold 14,427 211 — (1 ) 14,637 Selling, general and administrative 11,079 7,569 283 9,791 28,722 Depreciation and amortization 30,370 9,991 680 138 41,179 Total operating expenses 88,408 36,832 1,909 6,907 134,056 Operating income (loss) $ 24,213 $ 10,049 $ 1,124 $ (10,599 ) $ 24,787 A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended (in thousands) 2020 2019 Total consolidated operating income $ 23,050 $ 24,787 Interest expense (6,211 ) (7,954 ) Other 733 1,287 Income before income taxes $ 17,572 $ 18,120 |
Basis of Presentation and Oth_2
Basis of Presentation and Other Information (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Policies | There have been no developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures, from those disclosed in the Company's 2019 Annual Report on Form 10-K, that would be expected to impact the Company except for the following: The Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses ("ASC 326"): Measurement of Credit Losses on Financial Instruments , as of January 1, 2020 using the modified retrospective transition method. ASC 326 requires the application of a current expected credit loss (“CECL”) impairment model to financial assets measured at amortized cost including trade accounts receivable, net investments in leases, and certain off-balance-sheet credit exposures. Under the CECL model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. Furthermore, the CECL model requires financial assets with similar risk characteristics to be analyzed on a collective basis. There was no significant impact to condensed consolidated financial statements upon adoption. The Company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350"): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Below is a summary of the Wireless segment's contract asset: Three Months Ended (in thousands) 2020 2019 Beginning Balance $ 84,663 $ 65,674 Contract payments 18,245 18,151 Contract amortization against revenue (16,710 ) (13,454 ) Ending Balance $ 86,198 $ 70,371 |
Amortized and Capitalized Contract Cost | Below is a summary of the Broadband segment's capitalized contract acquisition costs: Three Months Ended (in thousands) 2020 2019 Beginning Balance $ 11,005 $ 10,091 Contract payments 1,685 1,699 Contract amortization (1,027 ) (1,381 ) Ending Balance $ 11,663 $ 10,409 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Other Investments | Investments consist of the following: (in thousands) March 31, 2020 December 31, 2019 SERP Investments at fair value $ 1,706 $ 2,278 Cost method investments 9,739 9,497 Equity method investments 566 613 Total investments $ 12,011 $ 12,388 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 7,143 $ 6,976 Buildings and structures 10 - 40 years 238,728 232,730 Cable and fiber 15 - 40 years 348,658 334,260 Equipment and software 3 - 20 years 870,089 867,898 Plant in service 1,464,618 1,441,864 Plant under construction 59,097 56,827 Total property, plant and equipment 1,523,715 1,498,691 Less: accumulated amortization and depreciation 827,795 797,177 Property, plant and equipment, net $ 695,920 $ 701,514 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Resulting from Acquisition | ntangible assets consisted of the following: March 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 13,839 — 13,839 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 78,314 — 78,314 Finite-lived intangibles: Sprint affiliate contract expansion - Wireless 455,305 (241,231 ) 214,074 455,305 (226,712 ) 228,593 FCC spectrum licenses 4,659 (160 ) 4,499 4,659 (97 ) 4,562 Acquired subscribers - Cable 28,065 (25,700 ) 2,365 28,065 (25,600 ) 2,465 Other intangibles 463 (257 ) 206 463 (250 ) 213 Total finite-lived intangibles 488,492 (267,348 ) 221,144 488,492 (252,659 ) 235,833 Total intangible assets $ 566,806 $ (267,348 ) $ 299,458 $ 566,806 $ (252,659 ) $ 314,147 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consisted of the following: March 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 13,839 — 13,839 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 78,314 — 78,314 Finite-lived intangibles: Sprint affiliate contract expansion - Wireless 455,305 (241,231 ) 214,074 455,305 (226,712 ) 228,593 FCC spectrum licenses 4,659 (160 ) 4,499 4,659 (97 ) 4,562 Acquired subscribers - Cable 28,065 (25,700 ) 2,365 28,065 (25,600 ) 2,465 Other intangibles 463 (257 ) 206 463 (250 ) 213 Total finite-lived intangibles 488,492 (267,348 ) 221,144 488,492 (252,659 ) 235,833 Total intangible assets $ 566,806 $ (267,348 ) $ 299,458 $ 566,806 $ (252,659 ) $ 314,147 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) March 31, December 31, Wireless contract asset $ 46,552 $ 44,844 Broadband contract acquisition and fulfillment costs 4,029 4,898 Prepaid maintenance expenses 3,252 3,329 Interest rate swaps — 1,382 Other 7,090 6,074 Prepaid expenses and other $ 60,923 $ 60,527 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, 2019 Wireless contract asset $ 39,646 $ 39,819 Broadband contract acquisition and fulfillment costs 7,634 6,107 Interest rate swaps — 1,252 Prepaid expenses and other 6,156 6,174 Deferred charges and other assets $ 53,436 $ 53,352 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, 2020 December 31, 2019 Sales and property taxes payable $ 5,259 $ 3,789 Accrued programming costs 3,053 3,023 Interest rate swaps 2,731 — Asset retirement obligations 137 148 Financing leases 97 94 FCC spectrum license obligations 28 105 Other current liabilities 7,878 7,232 Accrued liabilities and other $ 19,183 $ 14,391 |
Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, 2019 Noncurrent portion of deferred lease revenue $ 12,291 $ 12,449 FCC spectrum license obligations 1,703 1,699 Noncurrent portion of financing leases 1,543 1,591 Interest rate swaps 2,769 — Other 847 1,251 Other liabilities $ 19,153 $ 16,990 Market expectations of the projected London Interbank Offering Rate (LIBOR) decreased significantly during the first quarter of 2020 , which drove the fair value of our interest rate swaps to a liability. Refer to Note 9 , Derivatives and Hedging for more information. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities at March 31, 2020 : (in thousands) Operating Leases Finance Leases Total 2020 $ 45,222 $ 108 $ 45,330 2021 66,042 174 66,216 2022 64,256 174 64,430 2023 60,770 174 60,944 2024 56,105 174 56,279 2025 and thereafter 191,726 1,532 193,258 Total lease payments 484,121 2,336 486,457 Less: Interest 96,194 696 96,890 Present value of lease liabilities $ 387,927 $ 1,640 $ 389,567 |
Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities at March 31, 2020 : (in thousands) Operating Leases Finance Leases Total 2020 $ 45,222 $ 108 $ 45,330 2021 66,042 174 66,216 2022 64,256 174 64,430 2023 60,770 174 60,944 2024 56,105 174 56,279 2025 and thereafter 191,726 1,532 193,258 Total lease payments 484,121 2,336 486,457 Less: Interest 96,194 696 96,890 Present value of lease liabilities $ 387,927 $ 1,640 $ 389,567 |
Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | Below is a summary of our minimum rental receipts under the lease agreements in place at March 31, 2020 : (in thousands) Operating Leases 2020 $ 5,527 2021 5,775 2022 4,742 2023 3,112 2024 1,915 2025 and thereafter 4,192 Total $ 25,263 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our syndicated Credit Agreement includes a $75 million , five -year undrawn revolving credit facility, as well as the following outstanding term loans: (in thousands) March 31, December 31, Term loan A-1 $ 251,288 $ 258,571 Term loan A-2 472,221 473,469 723,509 732,040 Less: unamortized loan fees 11,306 11,926 Total debt, net of unamortized loan fees $ 712,203 $ 720,114 |
Financial Covenants in Credit Agreements | As shown below, as of March 31, 2020 , the Company was in compliance with the financial covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.41 3.25 or Lower Debt service coverage ratio 5.48 2.00 or Higher Minimum liquidity balance (in millions) $ 195.0 $25.0 or Higher |
Derivative and Hedging (Tables)
Derivative and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | They were presented as follows: (in thousands) March 31, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ — $ 1,382 Deferred charges and other assets, net — 1,252 Accrued liabilities and other 2,731 — Other liabilities 2,769 — Total derivatives designated as hedging instruments $ 5,500 $ 2,634 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes changes in accumulated other comprehensive income (loss) by component: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2019 $ 2,634 $ (2,326 ) $ 308 Net change in unrealized gain (loss) (7,706 ) 1,921 (5,785 ) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense (428 ) 107 (321 ) Net current period other comprehensive income (loss) (8,134 ) 2,028 (6,106 ) Balance as of March 31, 2020 $ (5,500 ) $ (298 ) $ (5,798 ) |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) 2020 2019 Calculation of net income per share: Net income $ 13,280 $ 13,910 Basic weighted average shares outstanding 49,888 49,775 Basic net income per share $ 0.27 $ 0.28 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,888 49,775 Effect from dilutive shares and options outstanding 148 340 Diluted weighted average shares outstanding 50,036 50,115 Diluted net income per share $ 0.27 $ 0.28 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Segments | Three Months Ended March 31, 2020 : (in thousands) Wireless Broadband Tower Corporate & Eliminations Consolidated External revenue Postpaid $ 74,928 $ — $ — $ — $ 74,928 Prepaid 13,109 — — — 13,109 Tower lease — — 1,797 — 1,797 Cable, residential and SMB (1) — 34,943 — — 34,943 Fiber, enterprise and wholesale — 5,488 — — 5,488 Rural local exchange carrier — 4,756 — — 4,756 Travel, installation, and other 3,351 1,816 — — 5,167 Service revenue and other 91,388 47,003 1,797 — 140,188 Equipment 12,750 250 — — 13,000 Total external revenue 104,138 47,253 1,797 — 153,188 Revenue from other segments — 2,533 1,933 (4,466 ) — Total revenue 104,138 49,786 3,730 (4,466 ) 153,188 Operating expenses Cost of services 33,439 19,243 939 (4,056 ) 49,565 Cost of goods sold 12,528 143 — — 12,671 Selling, general and administrative 9,428 9,499 526 11,538 30,991 Depreciation and amortization 25,299 10,871 470 271 36,911 Total operating expenses 80,694 39,756 1,935 7,753 130,138 Operating income (loss) $ 23,444 $ 10,030 $ 1,795 $ (12,219 ) $ 23,050 _______________________________________________________ (1) SMB refers to Small and Medium Businesses. Three Months Ended March 31, 2019 : (in thousands) Wireless Broadband Tower Corporate & Eliminations Consolidated External revenue Postpaid $ 76,182 $ — $ — $ — $ 76,182 Prepaid 13,130 — — — 13,130 Tower lease — — 1,763 — 1,763 Cable, residential and SMB — 32,426 — — 32,426 Fiber, enterprise and wholesale — 4,828 — — 4,828 Rural local exchange carrier — 5,238 — — 5,238 Travel, installation, and other 8,018 1,646 — — 9,664 Service revenue and other 97,330 44,138 1,763 — 143,231 Equipment 15,291 321 — — 15,612 Total external revenue 112,621 44,459 1,763 — 158,843 Revenue from other segments — 2,422 1,270 (3,692 ) — Total revenue 112,621 46,881 3,033 (3,692 ) 158,843 Operating expenses Cost of services 32,532 19,061 946 (3,021 ) 49,518 Cost of goods sold 14,427 211 — (1 ) 14,637 Selling, general and administrative 11,079 7,569 283 9,791 28,722 Depreciation and amortization 30,370 9,991 680 138 41,179 Total operating expenses 88,408 36,832 1,909 6,907 134,056 Operating income (loss) $ 24,213 $ 10,049 $ 1,124 $ (10,599 ) $ 24,787 |
Reconciliation of Operating Profit (Loss) 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 (in thousands) 2020 2019 Total consolidated operating income $ 23,050 $ 24,787 Interest expense (6,211 ) (7,954 ) Other 733 1,287 Income before income taxes $ 17,572 $ 18,120 |
Basis of Presentation and Oth_3
Basis of Presentation and Other Information - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 11, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Prepaid expenses and other | $ 60,923 | $ 60,527 | $ 60,527 | |||
Retained earnings | 443,290 | 430,010 | 430,010 | |||
Property, plant and equipment, net | 695,920 | 701,514 | 701,514 | |||
Deferred income taxes | 137,674 | 137,567 | 137,567 | |||
Depreciation expense | 36,911 | $ 41,179 | ||||
Income tax expense | 4,292 | 4,210 | ||||
Net income | $ 13,280 | $ 13,910 | ||||
Subsequent Event | Affiliated Entity | ||||||
Subsequent Event [Line Items] | ||||||
Negotiation period | 90 days | |||||
Option to purchase assets, period | 60 days | |||||
Purchase option, value of business percentage | 90.00% | |||||
Option to purchase network, period | 60 days | |||||
COVID-19 | ||||||
Subsequent Event [Line Items] | ||||||
Percentage of stores temporarily closed | 40.00% | |||||
Correction of Error | Prior Period Errors | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Prepaid expenses and other | 2,700 | 2,700 | ||||
Deferred tax liabilities, net | 700 | 700 | ||||
Retained earnings | 2,000 | 2,000 | ||||
Property, plant and equipment, net | 1,400 | 1,400 | ||||
Deferred income taxes | 400 | 400 | ||||
Depreciation expense | (1,400) | (1,400) | ||||
Income tax expense | 400 | 400 | ||||
Net income | $ 1,000 | $ 1,000 | ||||
Increase (decrease) in earnings per share, basic (in dollars per share) | $ 0.02 | $ 0.02 | ||||
Increase (decrease) in earnings per share, diluted (in dollars per share) | $ 0.02 | $ 0.02 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Remaining performance obligations | $ 3.2 | |
Revenue remaining performance obligation, per year | 0.8 | |
Sprint | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Contract with Customer, Refund Liability | 7 | $ 7 |
Monthly revenue from contract with customer | $ 1.5 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contract with Customers - Contract Asset Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract Asset Balance [Roll Forward] | ||
Beginning Balance | $ 84,663 | $ 65,674 |
Contract payments | 18,245 | 18,151 |
Contract amortization | (16,710) | (13,454) |
Ending Balance | $ 86,198 | $ 70,371 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 11,005 | $ 10,091 |
Contract payments | 1,685 | 1,699 |
Contract amortization | (1,027) | (1,381) |
Ending Balance | $ 11,663 | $ 10,409 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
SERP Investments at fair value | $ 1,706 | $ 2,278 |
Cost method investments | 9,739 | 9,497 |
Equity method investments | 566 | 613 |
Total investments | $ 12,011 | $ 12,388 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | $ 1,706 | $ 2,278 | |
Valley Network Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest, percentage | 20.00% | ||
CoBank | |||
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | $ 9,000 | $ 8,700 | |
Other nonoperating income (expense) | 1,000 | $ 900 | |
Percentage of patronage credit paid in cash | 75.00% | ||
Percentage of patronage credit paid in share | 25.00% | ||
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties | 200 | ||
Related party costs | $ 800 | $ 700 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 1,523,715 | $ 1,498,691 |
Less: accumulated amortization and depreciation | 827,795 | 797,177 |
Property, plant and equipment, net | 695,920 | 701,514 |
Land | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 7,143 | 6,976 |
Buildings and structures | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 238,728 | 232,730 |
Buildings and structures | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 10 years | |
Buildings and structures | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 40 years | |
Cable and fiber | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 348,658 | 334,260 |
Cable and fiber | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 15 years | |
Cable and fiber | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 40 years | |
Equipment and software | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 870,089 | 867,898 |
Equipment and software | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 3 years | |
Equipment and software | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 20 years | |
Plant in service | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 1,464,618 | 1,441,864 |
Plant under construction | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 59,097 | $ 56,827 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 149,070 | $ 149,070 | ||
Waived management fees under affiliate agreement amount expected to collect monthly | 4,200 | |||
Waived management fees, included in affiliate contract expanse accumulated amortization | 9,800 | $ 9,600 | ||
Cumulative waived management fees | 147,000 | |||
Amortization of intangible assets | $ 4,900 | $ 5,700 | ||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Waived management fees, included in affiliate contract expanse accumulated amortization | $ 255,600 | |||
Big sandy acquisition | ||||
Business Acquisition [Line Items] | ||||
Aggregate purchase price | $ 10,000 | |||
Property, plant and equipment acquired | 4,600 | |||
Goodwill | 2,600 | |||
Customer relationships | Big sandy acquisition | ||||
Business Acquisition [Line Items] | ||||
Subscriber relationship acquired | $ 2,800 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangibles | $ 78,314 | $ 78,314 |
Gross Carrying Amount | 488,492 | 488,492 |
Accumulated Amortization and Other | (267,348) | (252,659) |
Net | 221,144 | 235,833 |
Total intangible assets, gross carrying amount | 566,806 | 566,806 |
Intangible assets, net | 299,458 | 314,147 |
Affiliate contract expansion | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 455,305 | 455,305 |
Accumulated Amortization and Other | (241,231) | (226,712) |
Net | 214,074 | 228,593 |
FCC Spectrum Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,659 | 4,659 |
Accumulated Amortization and Other | (160) | (97) |
Net | 4,499 | 4,562 |
Acquired subscribers - Cable | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,065 | 28,065 |
Accumulated Amortization and Other | (25,700) | (25,600) |
Net | 2,365 | 2,465 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 463 | 463 |
Accumulated Amortization and Other | (257) | (250) |
Net | 206 | 213 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangibles | 64,334 | 64,334 |
FCC Spectrum Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangibles | 13,839 | 13,839 |
Railroad crossing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total indefinite-lived intangibles | $ 141 | $ 141 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Wireless contract asset | $ 46,552 | $ 44,844 |
Broadband contract acquisition and fulfillment costs | 4,029 | 4,898 |
Prepaid maintenance expenses | 3,252 | 3,329 |
Interest rate swaps | 0 | 1,382 |
Other | 7,090 | 6,074 |
Prepaid expenses and other | $ 60,923 | $ 60,527 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Wireless contract asset | $ 39,646 | $ 39,819 |
Broadband contract acquisition and fulfillment costs | 7,634 | 6,107 |
Interest rate swaps | 0 | 1,252 |
Prepaid expenses and other | 6,156 | 6,174 |
Deferred charges and other assets | $ 53,436 | $ 53,352 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Sales and property taxes payable | $ 5,259 | $ 3,789 |
Asset retirement obligations | 137 | 148 |
Accrued programming costs | 3,053 | 3,023 |
Financing leases | 97 | 94 |
FCC spectrum license obligations | 28 | 105 |
Interest rate swaps | 2,731 | 0 |
Other current liabilities | 7,878 | 7,232 |
Accrued liabilities and other | $ 19,183 | $ 14,391 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 12,291 | $ 12,449 |
FCC spectrum license obligations | 1,703 | 1,699 |
Noncurrent portion of financing leases | 1,543 | 1,591 |
Interest rate swaps | 2,769 | 0 |
Other | 847 | 1,251 |
Other liabilities | $ 19,153 | $ 16,990 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 9 years | |
Operating lease, weighted average discount rate, percent | 4.30% | |
Finance lease, weighted average remaining lease term | 15 years | |
Finance lease, weighted average discount rate, percent | 5.10% | |
Operating lease, cost | $ 17.8 | $ 16.9 |
Finance lease, cost | 0.1 | |
Operating lease, payments | 15.5 | 14.7 |
Right-of-use asset obtained in exchange for operating lease liability | 3.3 | 4.6 |
Sublease income | $ 2.1 | $ 2 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
2020 | $ 45,222 |
2021 | 66,042 |
2022 | 64,256 |
2023 | 60,770 |
2024 | 56,105 |
2025 and thereafter | 191,726 |
Total lease payments | 484,121 |
Less: Interest | 96,194 |
Present value of lease liabilities | 387,927 |
Finance Leases | |
2020 | 108 |
2021 | 174 |
2022 | 174 |
2023 | 174 |
2024 | 174 |
2025 and thereafter | 1,532 |
Total lease payments | 2,336 |
Less: Interest | 696 |
Present value of lease liabilities | 1,640 |
Total | |
2020 | 45,330 |
2021 | 66,216 |
2022 | 64,430 |
2023 | 60,944 |
2024 | 56,279 |
2025 and thereafter | 193,258 |
Total lease payments | 486,457 |
Less: Interest | 96,890 |
Present value of lease liabilities | $ 389,567 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 5,527 |
2021 | 5,775 |
2022 | 4,742 |
2023 | 3,112 |
2024 | 1,915 |
2025 and thereafter | 4,192 |
Total | $ 25,263 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Dec. 18, 2015 | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||
Cash payments for interest | $ 5,800,000 | $ 7,200,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000,000 | ||
Term of credit facility | 5 years | ||
Term loan A-1 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term loan A-2 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% |
- Credit Agreement (Details)
- Credit Agreement (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 723,509 | $ 732,040 |
Less: unamortized loan fees | 11,306 | 11,926 |
Total debt, net of unamortized loan fees | 712,203 | 720,114 |
Term loan A-1 | ||
Debt Instrument [Line Items] | ||
Total | 251,288 | 258,571 |
Term loan A-2 | ||
Debt Instrument [Line Items] | ||
Total | $ 472,221 | $ 473,469 |
Long-Term Debt - Financial Cove
Long-Term Debt - Financial Covenants in Credit Agreements (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Total leverage ratio, actual | 2.41 |
Debt service coverage ratio, actual | 5.48 |
Minimum liquidity balance, actual | $ 195,000,000 |
Total Leverage Ratio | 3.25 |
Debt Service Coverage Ratio | 2 |
Minimum liquidity balance | $ 25,000,000 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - Not Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | May 31, 2016 | |
Derivative [Line Items] | |||
Notional amount of interest rate swaps | $ 328.7 | $ 339.8 | |
Increase (decrease) in fair value | $ (8.1) | ||
Interest Rate Swap, May 2016 | |||
Derivative [Line Items] | |||
Interest rate | 1.16% | ||
Percentage hedged | 45.40% |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivative Instruments (Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 0 | $ 1,252 |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 5,500 | 2,634 |
Interest rate swaps | Designated as Hedging Instrument | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 1,382 |
Interest rate swaps | Designated as Hedging Instrument | Deferred charges and other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 1,252 |
Interest rate swaps | Designated as Hedging Instrument | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 2,731 | 0 |
Interest rate swaps | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 2,769 | $ 0 |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax (Expense) Benefit | ||
Balance as of December 31, 2019 | $ (2,326) | |
Net change in unrealized gain (loss) | 1,921 | |
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 107 | |
Net current period other comprehensive income (loss) | 2,028 | |
Balance as of March 31, 2020 | (298) | |
Accumulated Other Comprehensive Income (Loss), net of taxes | ||
Balance as of December 31, 2019 | 308 | |
Net change in unrealized gain (loss) | (5,785) | |
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | (321) | |
Net current period other comprehensive income (loss) | (6,106) | $ (2,728) |
Balance as of March 31, 2020 | (5,798) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Gains (Losses) on Cash Flow Hedges | ||
Balance as of December 31, 2019 | 2,634 | |
Net change in unrealized gain (loss) | (7,706) | |
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | (428) | |
Net current period other comprehensive income (loss) | (8,134) | |
Balance as of March 31, 2020 | $ (5,500) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 24.40% | 23.20% |
Income taxes paid, net | $ 0 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive awards outstanding (fewer than) (in shares) | 125,000 | 125,000 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 70,000 | |
Relative Total Shareholder Return Awards (RTSRs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share performance period | 3 years | |
Bottom portion of peer percent group (as a percent) | 25.00% | |
Top portion of peer percent group (as a percent) | 25.00% | |
Relative Total Shareholder Return Awards (RTSRs) | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, issued (in shares) | 0 | |
Relative Total Shareholder Return Awards (RTSRs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (as a percent) | 150.00% | |
Director | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 14,000 | |
Restricted stock units granted (in dollars per share) | $ 48.47 | |
Employee | Relative Total Shareholder Return Awards (RTSRs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 40,000 | |
Restricted stock units granted (in dollars per share) | $ 56.32 |
Stock Compensation - Basic and
Stock Compensation - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Net income | $ 13,280 | $ 13,910 |
Basic weighted average shares outstanding (in shares) | 49,888 | 49,775 |
Basic net income per share (in dollars per share) | $ 0.27 | $ 0.28 |
Effect from dilutive shares and options outstanding (in shares) | 148 | 340 |
Diluted weighted average shares outstanding (in shares) | 50,036 | 50,115 |
Diluted net income per share (in dollars per share) | $ 0.27 | $ 0.28 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | Mar. 31, 2020USD ($) |
FCC Spectrum Licenses | |
Other Commitments [Line Items] | |
Other commitment, annual payments | $ 108,000 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
External revenue | ||
Total revenue | $ 153,188 | $ 158,843 |
Operating expenses | ||
Selling, general and administrative | 30,991 | 28,722 |
Depreciation and amortization | 36,911 | 41,179 |
Total operating expenses | 130,138 | 134,056 |
Operating income | 23,050 | 24,787 |
Wireless | ||
External revenue | ||
Total revenue | 104,138 | 112,621 |
Broadband | ||
External revenue | ||
Total revenue | 47,253 | 44,459 |
Tower | ||
External revenue | ||
Total revenue | 1,797 | 1,763 |
Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 104,138 | 112,621 |
Operating expenses | ||
Selling, general and administrative | 9,428 | 11,079 |
Depreciation and amortization | 25,299 | 30,370 |
Total operating expenses | 80,694 | 88,408 |
Operating income | 23,444 | 24,213 |
Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 49,786 | 46,881 |
Operating expenses | ||
Selling, general and administrative | 9,499 | 7,569 |
Depreciation and amortization | 10,871 | 9,991 |
Total operating expenses | 39,756 | 36,832 |
Operating income | 10,030 | 10,049 |
Operating Segments | Tower | ||
External revenue | ||
Total revenue | 3,730 | 3,033 |
Operating expenses | ||
Selling, general and administrative | 526 | 283 |
Depreciation and amortization | 470 | 680 |
Total operating expenses | 1,935 | 1,909 |
Operating income | 1,795 | 1,124 |
Intersegment Eliminations | ||
External revenue | ||
Total revenue | (4,466) | (3,692) |
Intersegment Eliminations | Wireless | ||
External revenue | ||
Total revenue | 0 | 0 |
Intersegment Eliminations | Broadband | ||
External revenue | ||
Total revenue | 2,533 | 2,422 |
Intersegment Eliminations | Tower | ||
External revenue | ||
Total revenue | 1,933 | 1,270 |
Corporate, Non-Segment | ||
Operating expenses | ||
Selling, general and administrative | 11,538 | 9,791 |
Depreciation and amortization | 271 | 138 |
Total operating expenses | 7,753 | 6,907 |
Operating income | (12,219) | (10,599) |
Postpaid | ||
External revenue | ||
Total revenue | 74,928 | 76,182 |
Postpaid | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 74,928 | 76,182 |
Postpaid | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 0 | 0 |
Postpaid | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Prepaid | ||
External revenue | ||
Total revenue | 13,109 | 13,130 |
Prepaid | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 13,109 | 13,130 |
Prepaid | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 0 | 0 |
Prepaid | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Tower lease | ||
External revenue | ||
Total revenue | 1,797 | 1,763 |
Tower lease | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 0 | 0 |
Tower lease | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 0 | 0 |
Tower lease | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 1,797 | 1,763 |
Cable, residential and SMB (1) | ||
External revenue | ||
Total revenue | 34,943 | 32,426 |
Cable, residential and SMB (1) | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 0 | 0 |
Cable, residential and SMB (1) | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 34,943 | 32,426 |
Cable, residential and SMB (1) | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Fiber, enterprise and wholesale | ||
External revenue | ||
Total revenue | 5,488 | 4,828 |
Fiber, enterprise and wholesale | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 0 | 0 |
Fiber, enterprise and wholesale | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 5,488 | 4,828 |
Fiber, enterprise and wholesale | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Rural local exchange carrier | ||
External revenue | ||
Total revenue | 4,756 | 5,238 |
Rural local exchange carrier | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 0 | 0 |
Rural local exchange carrier | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 4,756 | 5,238 |
Rural local exchange carrier | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Travel, installation, and other | ||
External revenue | ||
Total revenue | 5,167 | 9,664 |
Travel, installation, and other | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 3,351 | 8,018 |
Travel, installation, and other | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 1,816 | 1,646 |
Travel, installation, and other | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Service revenue and other | ||
External revenue | ||
Total revenue | 140,188 | 143,231 |
Service revenue and other | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 91,388 | 97,330 |
Service revenue and other | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 47,003 | 44,138 |
Service revenue and other | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 1,797 | 1,763 |
Equipment | ||
External revenue | ||
Total revenue | 13,000 | 15,612 |
Equipment | Operating Segments | Wireless | ||
External revenue | ||
Total revenue | 12,750 | 15,291 |
Equipment | Operating Segments | Broadband | ||
External revenue | ||
Total revenue | 250 | 321 |
Equipment | Operating Segments | Tower | ||
External revenue | ||
Total revenue | 0 | 0 |
Services | ||
Operating expenses | ||
Cost of services and cost of goods sold | 49,565 | 49,518 |
Services | Operating Segments | Wireless | ||
Operating expenses | ||
Cost of services and cost of goods sold | 33,439 | 32,532 |
Services | Operating Segments | Broadband | ||
Operating expenses | ||
Cost of services and cost of goods sold | 19,243 | 19,061 |
Services | Operating Segments | Tower | ||
Operating expenses | ||
Cost of services and cost of goods sold | 939 | 946 |
Services | Corporate, Non-Segment | ||
Operating expenses | ||
Cost of services and cost of goods sold | (4,056) | (3,021) |
Products | ||
Operating expenses | ||
Cost of services and cost of goods sold | 12,671 | 14,637 |
Products | Operating Segments | Wireless | ||
Operating expenses | ||
Cost of services and cost of goods sold | 12,528 | 14,427 |
Products | Operating Segments | Broadband | ||
Operating expenses | ||
Cost of services and cost of goods sold | 143 | 211 |
Products | Operating Segments | Tower | ||
Operating expenses | ||
Cost of services and cost of goods sold | 0 | 0 |
Products | Corporate, Non-Segment | ||
Operating expenses | ||
Cost of services and cost of goods sold | $ 0 | $ (1) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||
Total consolidated operating income | $ 23,050 | $ 24,787 |
Interest expense | (6,211) | (7,954) |
Other | 733 | 1,287 |
Income before income taxes | $ 17,572 | $ 18,120 |