Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 50,056,339 | |
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 | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 53,981 | $ 84,344 |
Accounts receivable, net of allowance for doubtful accounts of $347 and $352, respectively | 15,757 | 22,005 |
Income taxes receivable | 29,729 | 30,188 |
Prepaid expenses and other | 26,643 | 29,830 |
Total current assets | 126,110 | 166,367 |
Investments | 13,284 | 13,661 |
Property, plant and equipment, net | 581,541 | 554,162 |
Intangible assets, net and goodwill | 89,633 | 89,831 |
Operating lease right-of-use assets | 57,130 | 56,414 |
Deferred charges and other assets | 15,553 | 10,298 |
Total assets | 883,251 | 890,733 |
Current liabilities: | ||
Accounts payable | 21,422 | 28,542 |
Advanced billings and customer deposits | 11,128 | 11,128 |
Accrued compensation | 7,132 | 9,653 |
Current operating lease liabilities | 3,087 | 3,318 |
Accrued liabilities and other | 14,289 | 14,649 |
Total current liabilities | 57,058 | 67,290 |
Other long-term liabilities: | ||
Deferred income taxes | 85,665 | 86,014 |
Asset retirement obligations | 9,747 | 9,615 |
Benefit plan obligations | 8,097 | 8,216 |
Non-current operating lease liabilities | 52,719 | 51,692 |
Other liabilities | 25,636 | 25,631 |
Total other long-term liabilities | 181,864 | 181,168 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 50,049 and 49,965 issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Additional paid in capital | 52,008 | 49,351 |
Retained earnings | 592,321 | 592,924 |
Total shareholders’ equity | 644,329 | 642,275 |
Total liabilities and shareholders’ equity | $ 883,251 | $ 890,733 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 347 | $ 352 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000 | 96,000 |
Common stock, shares issued (in shares) | 50,049 | 49,965 |
Common stock, shares, outstanding (in shares) | 50,049 | 49,965 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Service revenue and other | $ 64,414 | $ 59,691 |
Operating expenses: | ||
Cost of services exclusive of depreciation and amortization | 26,339 | 23,424 |
Selling, general and administrative | 23,771 | 20,153 |
Restructuring expense | 0 | 618 |
Depreciation and amortization | 14,684 | 13,266 |
Total operating expenses | 64,794 | 57,461 |
Operating income (loss) | (380) | 2,230 |
Other income (expense): | ||
Other income (expense), net | (170) | 1,600 |
Income (loss) from continuing operations before income taxes | (550) | 3,830 |
Income tax expense | 53 | 885 |
Income (loss) from continuing operations | (603) | 2,945 |
Total income from discontinued operations, net of tax | 0 | 48,472 |
Net income (loss) | (603) | 51,417 |
Other comprehensive income: | ||
Unrealized income on interest rate hedge, net of tax | 0 | 773 |
Comprehensive income (loss) | $ (603) | $ 52,190 |
Net income (loss) per share, basic and diluted: | ||
Basic - Income (loss) from continuing operations (in dollars per share) | $ (0.01) | $ 0.06 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 0 | 0.97 |
Basic net income (loss) per share (in dollars per share) | (0.01) | 1.03 |
Diluted - Income (loss) from continuing operations (in dollars per share) | (0.01) | 0.06 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 0 | 0.97 |
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ 1.03 |
Weighted average shares outstanding, basic (in shares) | 50,146 | 49,947 |
Weighted average shares outstanding, diluted (in shares) | 50,146 | 50,081 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 49,868 | ||||
Beginning balance at Dec. 31, 2020 | $ 577,051 | $ 47,317 | $ 534,440 | $ (4,706) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | 51,417 | 51,417 | |||
Net gain on interest rate swaps, net of tax | 773 | 773 | |||
Stock based compensation (in shares) | 109 | ||||
Stock based compensation | 746 | 746 | |||
Common stock issued | 8 | 8 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (33) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (1,486) | (1,486) | |||
Ending balance (in shares) at Mar. 31, 2021 | 49,944 | ||||
Ending balance at Mar. 31, 2021 | $ 628,509 | 46,585 | 585,857 | (3,933) | |
Beginning balance (in shares) at Dec. 31, 2021 | 49,965 | 49,965 | |||
Beginning balance at Dec. 31, 2021 | $ 642,275 | 49,351 | 592,924 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (603) | (603) | |||
Stock based compensation (in shares) | 110 | ||||
Stock based compensation | 3,252 | 3,252 | |||
Common stock issued (in shares) | 1 | ||||
Common stock issued | 8 | 8 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (27) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (603) | (603) | |||
Ending balance (in shares) at Mar. 31, 2022 | 50,049 | 50,049 | |||
Ending balance at Mar. 31, 2022 | $ 644,329 | $ 52,008 | $ 592,321 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (603) | $ 51,417 |
Total income from discontinued operations, net of tax | 0 | 48,472 |
Income (loss) from continuing operations | (603) | 2,945 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 14,684 | 13,266 |
Stock based compensation expense, net of amount capitalized | 3,143 | 642 |
Deferred income taxes | (349) | 0 |
Other, net | 1,017 | (202) |
Changes in assets and liabilities: | ||
Accounts receivable | 5,890 | 1,861 |
Current income taxes | 459 | 885 |
Operating lease assets and liabilities, net | 80 | (260) |
Other assets | (1,365) | (5,683) |
Accounts payable | (4,130) | (281) |
Other deferrals and accruals | (2,760) | (4,037) |
Net cash provided by operating activities - continuing operations | 16,066 | 9,136 |
Net cash provided by operating activities - discontinued operations | 0 | 75,530 |
Net cash provided by operating activities | 16,066 | 84,666 |
Cash flows from investing activities: | ||
Capital expenditures | (45,693) | (39,482) |
Proceeds from sale of assets and other | 86 | 14 |
Net cash used in investing activities - continuing operations | (45,607) | (39,468) |
Net cash used in investing activities - discontinued operations | 0 | (882) |
Net cash used in investing activities | (45,607) | (40,350) |
Cash flows from financing activities: | ||
Taxes paid for equity award issuances | (603) | (1,486) |
Payments for financing arrangements and other | (219) | (496) |
Net cash used in financing activities - continuing operations | (822) | (1,982) |
Net cash used in financing activities - discontinued operations | 0 | (8,549) |
Net cash used in financing activities | (822) | (10,531) |
Net increase (decrease) in cash and cash equivalents | (30,363) | 33,785 |
Cash and cash equivalents, beginning of period | 84,344 | 195,397 |
Cash and cash equivalents, end of period | 53,981 | 229,182 |
Cash payments for: | ||
Interest | $ 0 | $ (3,897) |
Basis of Presentation and Other
Basis of Presentation and Other Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information The accompanying unaudited condensed 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 unaudited condensed 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, 2021. As discussed in Notes 1 and 16 to the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021, the Company determined that an immaterial error existed in our previously issued financial statements. As such, the Company revised its historical unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2021. Refer to the table below for a summary of these revisions. For the Three Months Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Unaudited Condensed Consolidated Statement of Comprehensive Income: Cost of services $ 23,283 $ 141 $ 23,424 Income from continuing operations before income taxes 3,971 (141) 3,830 Income tax expense 922 (37) 885 Income from continuing operations 3,049 (104) 2,945 Net income 51,521 (104) 51,417 Comprehensive income 52,294 (104) 52,190 The preparation of the unaudited condensed 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 condensed consolidated financial statements. These estimates are inherently subject to judgment and actual results could differ. Adoption of New Accounting Principles There have been no material 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 2021 Annual Report on Form 10-K, that would be expected to impact the Company. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 1, 2021, pursuant to the previously announced Asset Purchase Agreement (the “Purchase Agreement”), dated May 28, 2021, between Shentel and T-Mobile, Shentel completed the sale to T-Mobile of its Wireless assets and operations for cash consideration of approximately $1.94 billion, inclusive of the approximately $60 million settlement of the waived management fees by Sprint, and net of certain transaction expenses (the “Transaction”). The assets and liabilities that transferred in the sale (the "disposal group") were presented as held for sale within our historical unaudited condensed consolidated balance sheets, and discontinued operations within our historical unaudited condensed consolidated statements of comprehensive income (loss). Income from discontinued operations, net of tax in the unaudited condensed consolidated statements of comprehensive income (loss) consist of the following: (in thousands) Three Months Ended Revenue: Service revenue and other $ 100,674 Equipment revenue 6,399 Total revenue 107,073 Operating expenses: Cost of services 19,427 Cost of goods sold 6,221 Selling, general and administrative 10,702 Severance expense 211 Total operating expenses 36,561 Operating income 70,512 Interest expense and other, net (4,384) Income before income taxes 66,128 Income tax expense 17,656 Income from discontinued operations, net of tax $ 48,472 There was no material income from discontinued operations for the three months ended March 31, 2022. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our Broadband segment provides broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic, hybrid fiber coaxial cable, and fixed wireless networks. The Broadband segment also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These contracts are generally cancellable at the customer’s discretion without penalty at any time. We allocate the total transaction price in these transactions based upon the standalone selling price of each distinct good or service. We generally recognize these revenues over time as customers simultaneously receive and consume the benefits of the service, with the exception of equipment sales and home wiring, which are recognized as revenue at a point in time when control transfers and when installation is complete, respectively. Installation fees, charged upfront without transfer of commensurate goods or services to the customer, are allocated to services and are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the contract, which we estimate to be one year. Additionally, the Company incurs commission expenses related to in-house and third-party vendors which are capitalized and amortized over the expected weighted average customer life which is approximately six years. Amortization of capitalized commission expenses is recorded in selling, general and administrative expenses in the Company's unaudited condensed consolidated statements of comprehensive income (loss). Below is a summary of the Broadband segment's capitalized contract acquisition costs: Three Months Ended (in thousands) 2022 2021 Beginning Balance $ 8,147 $ 7,358 Contract payments 338 1,114 Contract amortization (182) (709) Ending Balance $ 8,303 $ 7,763 Our Broadband segment also provides Ethernet and Wavelength fiber optic services to commercial fiber customers under capacity agreements, and the related revenue is recognized over time. In some cases, non-refundable upfront fees are charged for connecting commercial fiber customers to our fiber network. Those amounts are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the respective contract. A related contract liability of $3.9 million at March 31, 2022, is expected to be recognized into revenue at the rate of approximately $0.2 million per year. The Broadband segment also leases dedicated fiber optic strands to customers as part of “dark fiber” agreements, which are accounted for as leases under Accounting Standards Codification 842, Leases, ("ASC 842"). Our Tower segment leases space on owned cell towers to our Broadband segment, and to other wireless carriers. Revenue from these leases is accounted for under ASC 842. Refer to Note 12, Segment Reporting , for a summary of these revenue streams. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) March 31, December 31, SERP investments at fair value $ 2,173 $ 2,317 Cost method investments 10,752 11,004 Equity method investments 359 340 Total investments $ 13,284 $ 13,661 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. At March 31, 2022 and December 31, 2021, an additional $0.8 million of SERP investments were presented as prepaid expenses and other (current assets) as we intend to liquidate certain investments to pay the current portion of our SERP obligation. Cost Method Investments : Our investment in CoBank ACB’s Class A common stock represented substantially all of our cost method investments with a balance of $10.0 million and $10.3 million at March 31, 2022 and December 31, 2021, respectively. We recognized approximately $0.1 million and $1.0 million of patronage income in other income for the three months ended March 31, 2022 and 2021, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At March 31, 2022 and December 31, 2021, 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, through related party transactions. We recognized revenue of $0.2 million during each of the three months ended March 31, 2022 and 2021. We recognized cost of service of $28.2 thousand and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 3,771 $ 3,771 Land improvements 10 years 3,483 3,478 Buildings and structures 10 - 45 years 96,504 96,323 Cable and fiber 15 - 30 years 476,573 453,405 Equipment and software 4 - 8 years 383,619 391,293 Plant in service 963,950 948,270 Plant under construction 105,027 79,963 Total property, plant and equipment 1,068,977 1,028,233 Less: accumulated depreciation and amortization 487,436 474,071 Property, plant and equipment, net $ 581,541 $ 554,162 Property, plant and equipment net, increases were primarily attributable to capital expenditures in the Broadband segment due to expansion of Glo Fiber assets and market expansion. Depreciation expense was $14.5 million and $13.0 million for the three months ended March 31, 2022 and 2021, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets consist of the following: March 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 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: FCC spectrum licenses 6,811 (751) 6,060 6,811 (672) 6,139 Subscriber relationships 28,425 (26,564) 1,861 28,425 (26,451) 1,974 Other intangibles 463 (309) 154 463 (303) 160 Total finite-lived intangibles 35,699 (27,624) 8,075 35,699 (27,426) 8,273 Total goodwill and intangible assets $ 117,257 $ (27,624) $ 89,633 $ 117,257 $ (27,426) $ 89,831 Amortization expense was $0.2 million for both the three months ended March 31, 2022 and 2021. |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
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, Deposit for FCC spectrum licenses $ 16,118 $ 16,118 Prepaid maintenance and software expenses 4,961 8,391 Broadband contract acquisition costs 2,610 2,502 SERP investments 801 801 Other 2,153 2,018 Prepaid expenses and other $ 26,643 $ 29,830 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, Broadband contract acquisition costs $ 5,693 $ 5,645 Prepaid maintenance and software expenses 9,860 4,653 Deferred charges and other assets $ 15,553 $ 10,298 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, December 31, Accrued programming costs $ 3,258 $ 3,084 Sales and property taxes payable 1,852 1,065 Restructuring accrual 905 1,761 Other current liabilities 8,274 8,739 Accrued liabilities and other $ 14,289 $ 14,649 Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, Noncurrent portion of deferred lease revenue $ 19,449 $ 19,749 FCC spectrum license obligations 3,814 3,807 Noncurrent portion of financing leases 1,513 1,614 Other 860 461 Other liabilities $ 25,636 $ 25,631 During the third quarter of 2020, the Company was awarded certain indefinite-lived Citizens Broadband Radio Service ("CBRS") spectrum licenses to be used within the Broadband segment. The Company paid an aggregate deposit of $16.1 million with the licenses subject to final approval and issuance by the Federal Communications Commission (“FCC”). The licenses will provide us priority access rights over general access users other than incumbents, in that specific band, in accordance with the FCC’s three-tier CBRS band spectrum sharing framework. The FCC is still reviewing the Company’s final application for the licenses. The entire deposit of $16.1 million is classified within prepaid expenses and other in the Company’s consolidated balance sheets as of March 31, 2022 and December 31, 2021. In 2021, as a result of the sale of our Wireless assets and operations, we implemented a restructuring plan whereby certain employees were notified of their pending dismissal under the workforce reduction program. We made $0.8 million in severance payments related to the workforce reduction program for the three months ended March 31, 2022. There were no severance payments for the three months ended March 31, 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. At March 31, 2022, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. For each of the three months ended March 31, 2022 and 2021, we recognized $2.7 million and $1.4 million of operating lease expense, respectively. We recognized $0.1 million and $0.2 million of interest and depreciation expense on finance leases for the three months ended March 31, 2022 and 2021, respectively. 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 $1.6 million and $1.5 million of operating lease payments for the three months ended March 31, 2022 and 2021, respectively. We also obtained $1.6 million and $2.7 million of leased assets in exchange for new operating lease liabilities recognized for the three months ended March 31, 2022 and 2021, respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2022: (in thousands) Operating Leases Finance Leases Total 2022 $ 3,905 $ 70 $ 3,975 2023 5,223 176 5,399 2024 4,893 178 5,071 2025 4,696 180 4,876 2026 4,211 153 4,364 2027 and thereafter 68,256 1,514 69,770 Total lease payments 91,184 2,271 93,455 Less: Interest 35,378 666 36,044 Present value of lease liabilities $ 55,806 $ 1,605 $ 57,411 We recognized $5.4 million and $2.4 million of operating lease revenue for the three months ended March 31, 2022 and 2021, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). 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, 2022: (in thousands) Operating Leases 2022 $ 12,398 2023 13,849 2024 12,840 2025 11,908 2026 8,899 2027 and thereafter 30,769 Total $ 90,663 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. At March 31, 2022, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. For each of the three months ended March 31, 2022 and 2021, we recognized $2.7 million and $1.4 million of operating lease expense, respectively. We recognized $0.1 million and $0.2 million of interest and depreciation expense on finance leases for the three months ended March 31, 2022 and 2021, respectively. 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 $1.6 million and $1.5 million of operating lease payments for the three months ended March 31, 2022 and 2021, respectively. We also obtained $1.6 million and $2.7 million of leased assets in exchange for new operating lease liabilities recognized for the three months ended March 31, 2022 and 2021, respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2022: (in thousands) Operating Leases Finance Leases Total 2022 $ 3,905 $ 70 $ 3,975 2023 5,223 176 5,399 2024 4,893 178 5,071 2025 4,696 180 4,876 2026 4,211 153 4,364 2027 and thereafter 68,256 1,514 69,770 Total lease payments 91,184 2,271 93,455 Less: Interest 35,378 666 36,044 Present value of lease liabilities $ 55,806 $ 1,605 $ 57,411 We recognized $5.4 million and $2.4 million of operating lease revenue for the three months ended March 31, 2022 and 2021, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). 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, 2022: (in thousands) Operating Leases 2022 $ 12,398 2023 13,849 2024 12,840 2025 11,908 2026 8,899 2027 and thereafter 30,769 Total $ 90,663 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. At March 31, 2022, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. For each of the three months ended March 31, 2022 and 2021, we recognized $2.7 million and $1.4 million of operating lease expense, respectively. We recognized $0.1 million and $0.2 million of interest and depreciation expense on finance leases for the three months ended March 31, 2022 and 2021, respectively. 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 $1.6 million and $1.5 million of operating lease payments for the three months ended March 31, 2022 and 2021, respectively. We also obtained $1.6 million and $2.7 million of leased assets in exchange for new operating lease liabilities recognized for the three months ended March 31, 2022 and 2021, respectively. The following table summarizes the expected maturity of lease liabilities at March 31, 2022: (in thousands) Operating Leases Finance Leases Total 2022 $ 3,905 $ 70 $ 3,975 2023 5,223 176 5,399 2024 4,893 178 5,071 2025 4,696 180 4,876 2026 4,211 153 4,364 2027 and thereafter 68,256 1,514 69,770 Total lease payments 91,184 2,271 93,455 Less: Interest 35,378 666 36,044 Present value of lease liabilities $ 55,806 $ 1,605 $ 57,411 We recognized $5.4 million and $2.4 million of operating lease revenue for the three months ended March 31, 2022 and 2021, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of comprehensive income (loss). 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, 2022: (in thousands) Operating Leases 2022 $ 12,398 2023 13,849 2024 12,840 2025 11,908 2026 8,899 2027 and thereafter 30,769 Total $ 90,663 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022. The Company's income tax returns are generally open to examination from 2018 forward and the net operating losses acquired in the acquisition of nTelos are open to examination from 2002 forward. The effective tax rates for the three months ended March 31, 2022 and 2021, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items. Three Months Ended (in thousands) 2022 2021 Expected tax expense (benefit) at federal statutory $ (115) $ 804 State income tax expense (benefit), net of federal tax effect (32) 308 Excess tax deficiency (benefit) from share based compensation and other expense, net 200 (227) Income tax expense $ 53 $ 885 The Company made no cash payments and received no cash refunds for income taxes for the three months ended March 31, 2022. The Company's cash refunds for income taxes were approximately $0.8 million for the three months ended March 31, 2021. |
Stock Compensation and Earnings
Stock Compensation and Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation and Earnings per Share | Stock Compensation and Earnings per Share The Company granted approximately 195 thousand restricted stock units ("RSUs") to employees and approximately 48 thousand RSUs to members of the board of directors, at a market price of $21.57 per award during the three months ended March 31, 2022. Under the terms of the award agreements, the RSUs granted to employees vest ratably on an annual basis through 2026. The RSUs granted to the members of the board of directors vest fully on the first anniversary of the grant date. Additionally, approximately 97 thousand Relative Total Shareholder Return (“RTSR”) awards were granted to employees at a value of $23.83 per award. Pursuant to the terms of the RTSR awards, the Company’s stock performance over a three-year period, ending December 31, 2024, 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 zero (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) 2022 2021 Calculation of net income (loss) per share: Income (loss) from continuing operations $ (603) $ 2,945 Total income from discontinued operations, net of tax $ — $ 48,472 Net income (loss) $ (603) $ 51,417 Basic weighted average shares outstanding 50,146 49,947 Basic net income (loss) per share - continuing operations $ (0.01) $ 0.06 Basic net income per share - discontinued operations $ — $ 0.97 Basic net income (loss) per share $ (0.01) $ 1.03 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,146 49,947 Effect from dilutive shares and options outstanding — 134 Diluted weighted average shares outstanding 50,146 50,081 Diluted net income (loss) per share - continuing operations $ (0.01) $ 0.06 Diluted net income per share - discontinued operations $ — $ 0.97 Diluted net income (loss) per share $ (0.01) $ 1.03 There were approximately 147 thousand potentially dilutive equity awards for the three months ended March 31, 2022; however, these securities were excluded from the calculation of diluted weighted average shares outstanding due to the fact that they were anti-dilutive as a result of the Company's net loss for the period. There were fewer than 100 thousand anti-dilutive equity awards outstanding for the three months ended March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are committed to make payments to satisfy our lease liabilities. The scheduled payments under those obligations are summarized in Note 8, Leases . We also have outstanding unconditional purchase commitments to procure marketing services and IT software licenses through 2026 and commitments for licenses to access Educational Broadband Service (“EBS”) spectrum channels through 2039. From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisors with respect to such matters. Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve discretionary amounts, present novel legal theories, are in the early stages of the proceedings, or are subject to appeal. Whether any losses, damages or remedies ultimately resulting from such matters could reasonably have a material effect on the Company’s business, financial condition, results of operations, or cash flows will depend on a number of variables, including, for example, the timing and amount of such losses or damages (if any) and the structure and type of any such remedies. The Company’s management does not presently expect any litigation matters to have a material adverse impact on the consolidated financial statements of the Company. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Three Months Ended March 31, 2022: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 46,913 $ — $ — $ 46,913 Commercial Fiber 9,062 — — 9,062 RLEC & Other 3,689 — — 3,689 Tower lease — 4,746 — 4,746 Service revenue and other 59,664 4,746 — 64,410 Revenue for service provided to the discontinued Wireless operations 50 101 (147) 4 Total revenue 59,714 4,847 (147) 64,414 Operating expenses Cost of services 25,168 1,292 (121) 26,339 Selling, general and administrative 13,489 318 9,964 23,771 Depreciation and amortization 12,876 484 1,324 14,684 Total operating expenses 51,533 2,094 11,167 64,794 Operating income (loss) $ 8,181 $ 2,753 $ (11,314) $ (380) Three Months Ended March 31, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 42,930 $ — $ — $ 42,930 Commercial Fiber 6,385 — — 6,385 RLEC & Other 3,631 — — 3,631 Tower lease — 2,150 — 2,150 Service revenue and other 52,946 2,150 — 55,096 Revenue for service provided to the discontinued Wireless operations 2,208 2,515 (128) 4,595 Total revenue 55,154 4,665 (128) 59,691 Operating expenses Cost of services 22,277 1,248 (101) 23,424 Selling, general and administrative 10,725 234 9,194 20,153 Restructuring expense 105 — 513 618 Depreciation and amortization 11,761 481 1,024 13,266 Total operating expenses 44,868 1,963 10,630 57,461 Operating income (loss) $ 10,286 $ 2,702 $ (10,758) $ 2,230 A reconciliation of the total of the reportable segments’ operating income to consolidated income (loss) for continuing operations before income taxes is as follows: Three Months Ended (in thousands) 2022 2021 Total consolidated operating income (loss) $ (380) $ 2,230 Other income (expense), net (170) 1,600 Income (loss) from continuing operations before income taxes $ (550) $ 3,830 The Company’s chief operating decision maker (CODM) does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments. Accordingly, total assets by segment are not provided. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In the fourth quarter of 2021, due to the availability of grants awarded under various governmental initiatives, and in support of rural fiber to the home ("FTTH") broadband network expansion projects, we decided to cease further expansion of our “Beam” fixed wireless edge-out strategy. The Company decided in April 2022 to cease operations for certain Beam sites encompassing approximately $4.0 million of property, plant, and equipment, net. The Company plans to continue to operate the remaining Beam sites and provide service to existing customers. We expect to finalize our plan and begin the implementation of the site decommissioning activities in the second quarter of 2022. Upon finalization of our plan to decommission certain Beam fixed wireless sites, we expect to incur approximately $4.0 million of impairment costs and approximately $1.0 million of additional termination costs during the second quarter of 2022, in our Broadband segment. |
Basis of Presentation and Oth_2
Basis of Presentation and Other Information (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Principles | There have been no material 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 2021 Annual Report on Form 10-K, that would be expected to impact the Company. |
Investment | 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. At March 31, 2022 and December 31, 2021, an additional $0.8 million of SERP investments were presented as prepaid expenses and other (current assets) as we intend to liquidate certain investments to pay the current portion of our SERP obligation. Cost Method Investments : Our investment in CoBank ACB’s Class A common stock represented substantially all of our cost method investments with a balance of $10.0 million and $10.3 million at March 31, 2022 and December 31, 2021, respectively. We recognized approximately $0.1 million and $1.0 million of patronage income in other income for the three months ended March 31, 2022 and 2021, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At March 31, 2022 and December 31, 2021, 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, through related party transactions. We recognized revenue of $0.2 million during each of the three months ended March 31, 2022 and 2021. We recognized cost of service of $28.2 thousand and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Refer to the table below for a summary of these revisions. For the Three Months Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Unaudited Condensed Consolidated Statement of Comprehensive Income: Cost of services $ 23,283 $ 141 $ 23,424 Income from continuing operations before income taxes 3,971 (141) 3,830 Income tax expense 922 (37) 885 Income from continuing operations 3,049 (104) 2,945 Net income 51,521 (104) 51,417 Comprehensive income 52,294 (104) 52,190 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Income from discontinued operations, net of tax in the unaudited condensed consolidated statements of comprehensive income (loss) consist of the following: (in thousands) Three Months Ended Revenue: Service revenue and other $ 100,674 Equipment revenue 6,399 Total revenue 107,073 Operating expenses: Cost of services 19,427 Cost of goods sold 6,221 Selling, general and administrative 10,702 Severance expense 211 Total operating expenses 36,561 Operating income 70,512 Interest expense and other, net (4,384) Income before income taxes 66,128 Income tax expense 17,656 Income from discontinued operations, net of tax $ 48,472 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Amortized and Capitalized Contract Cost | Below is a summary of the Broadband segment's capitalized contract acquisition costs: Three Months Ended (in thousands) 2022 2021 Beginning Balance $ 8,147 $ 7,358 Contract payments 338 1,114 Contract amortization (182) (709) Ending Balance $ 8,303 $ 7,763 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Other Investments | Investments consist of the following: (in thousands) March 31, December 31, SERP investments at fair value $ 2,173 $ 2,317 Cost method investments 10,752 11,004 Equity method investments 359 340 Total investments $ 13,284 $ 13,661 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following: ($ in thousands) Estimated Useful Lives March 31, December 31, Land $ 3,771 $ 3,771 Land improvements 10 years 3,483 3,478 Buildings and structures 10 - 45 years 96,504 96,323 Cable and fiber 15 - 30 years 476,573 453,405 Equipment and software 4 - 8 years 383,619 391,293 Plant in service 963,950 948,270 Plant under construction 105,027 79,963 Total property, plant and equipment 1,068,977 1,028,233 Less: accumulated depreciation and amortization 487,436 474,071 Property, plant and equipment, net $ 581,541 $ 554,162 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Resulting from Acquisition | Goodwill and intangible assets consist of the following: March 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 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: FCC spectrum licenses 6,811 (751) 6,060 6,811 (672) 6,139 Subscriber relationships 28,425 (26,564) 1,861 28,425 (26,451) 1,974 Other intangibles 463 (309) 154 463 (303) 160 Total finite-lived intangibles 35,699 (27,624) 8,075 35,699 (27,426) 8,273 Total goodwill and intangible assets $ 117,257 $ (27,624) $ 89,633 $ 117,257 $ (27,426) $ 89,831 |
Schedule of Finite-Lived Intangible Assets | Goodwill and intangible assets consist of the following: March 31, 2022 December 31, 2021 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 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: FCC spectrum licenses 6,811 (751) 6,060 6,811 (672) 6,139 Subscriber relationships 28,425 (26,564) 1,861 28,425 (26,451) 1,974 Other intangibles 463 (309) 154 463 (303) 160 Total finite-lived intangibles 35,699 (27,624) 8,075 35,699 (27,426) 8,273 Total goodwill and intangible assets $ 117,257 $ (27,624) $ 89,633 $ 117,257 $ (27,426) $ 89,831 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, Deposit for FCC spectrum licenses $ 16,118 $ 16,118 Prepaid maintenance and software expenses 4,961 8,391 Broadband contract acquisition costs 2,610 2,502 SERP investments 801 801 Other 2,153 2,018 Prepaid expenses and other $ 26,643 $ 29,830 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) March 31, December 31, Broadband contract acquisition costs $ 5,693 $ 5,645 Prepaid maintenance and software expenses 9,860 4,653 Deferred charges and other assets $ 15,553 $ 10,298 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) March 31, December 31, Accrued programming costs $ 3,258 $ 3,084 Sales and property taxes payable 1,852 1,065 Restructuring accrual 905 1,761 Other current liabilities 8,274 8,739 Accrued liabilities and other $ 14,289 $ 14,649 |
Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) March 31, December 31, Noncurrent portion of deferred lease revenue $ 19,449 $ 19,749 FCC spectrum license obligations 3,814 3,807 Noncurrent portion of financing leases 1,513 1,614 Other 860 461 Other liabilities $ 25,636 $ 25,631 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities at March 31, 2022: (in thousands) Operating Leases Finance Leases Total 2022 $ 3,905 $ 70 $ 3,975 2023 5,223 176 5,399 2024 4,893 178 5,071 2025 4,696 180 4,876 2026 4,211 153 4,364 2027 and thereafter 68,256 1,514 69,770 Total lease payments 91,184 2,271 93,455 Less: Interest 35,378 666 36,044 Present value of lease liabilities $ 55,806 $ 1,605 $ 57,411 |
Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities at March 31, 2022: (in thousands) Operating Leases Finance Leases Total 2022 $ 3,905 $ 70 $ 3,975 2023 5,223 176 5,399 2024 4,893 178 5,071 2025 4,696 180 4,876 2026 4,211 153 4,364 2027 and thereafter 68,256 1,514 69,770 Total lease payments 91,184 2,271 93,455 Less: Interest 35,378 666 36,044 Present value of lease liabilities $ 55,806 $ 1,605 $ 57,411 |
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, 2022: (in thousands) Operating Leases 2022 $ 12,398 2023 13,849 2024 12,840 2025 11,908 2026 8,899 2027 and thereafter 30,769 Total $ 90,663 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Taxes | Three Months Ended (in thousands) 2022 2021 Expected tax expense (benefit) at federal statutory $ (115) $ 804 State income tax expense (benefit), net of federal tax effect (32) 308 Excess tax deficiency (benefit) from share based compensation and other expense, net 200 (227) Income tax expense $ 53 $ 885 |
Stock Compensation and Earnin_2
Stock Compensation and Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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) 2022 2021 Calculation of net income (loss) per share: Income (loss) from continuing operations $ (603) $ 2,945 Total income from discontinued operations, net of tax $ — $ 48,472 Net income (loss) $ (603) $ 51,417 Basic weighted average shares outstanding 50,146 49,947 Basic net income (loss) per share - continuing operations $ (0.01) $ 0.06 Basic net income per share - discontinued operations $ — $ 0.97 Basic net income (loss) per share $ (0.01) $ 1.03 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,146 49,947 Effect from dilutive shares and options outstanding — 134 Diluted weighted average shares outstanding 50,146 50,081 Diluted net income (loss) per share - continuing operations $ (0.01) $ 0.06 Diluted net income per share - discontinued operations $ — $ 0.97 Diluted net income (loss) per share $ (0.01) $ 1.03 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Segments | Three Months Ended March 31, 2022: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 46,913 $ — $ — $ 46,913 Commercial Fiber 9,062 — — 9,062 RLEC & Other 3,689 — — 3,689 Tower lease — 4,746 — 4,746 Service revenue and other 59,664 4,746 — 64,410 Revenue for service provided to the discontinued Wireless operations 50 101 (147) 4 Total revenue 59,714 4,847 (147) 64,414 Operating expenses Cost of services 25,168 1,292 (121) 26,339 Selling, general and administrative 13,489 318 9,964 23,771 Depreciation and amortization 12,876 484 1,324 14,684 Total operating expenses 51,533 2,094 11,167 64,794 Operating income (loss) $ 8,181 $ 2,753 $ (11,314) $ (380) Three Months Ended March 31, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 42,930 $ — $ — $ 42,930 Commercial Fiber 6,385 — — 6,385 RLEC & Other 3,631 — — 3,631 Tower lease — 2,150 — 2,150 Service revenue and other 52,946 2,150 — 55,096 Revenue for service provided to the discontinued Wireless operations 2,208 2,515 (128) 4,595 Total revenue 55,154 4,665 (128) 59,691 Operating expenses Cost of services 22,277 1,248 (101) 23,424 Selling, general and administrative 10,725 234 9,194 20,153 Restructuring expense 105 — 513 618 Depreciation and amortization 11,761 481 1,024 13,266 Total operating expenses 44,868 1,963 10,630 57,461 Operating income (loss) $ 10,286 $ 2,702 $ (10,758) $ 2,230 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income to consolidated income (loss) for continuing operations before income taxes is as follows: Three Months Ended (in thousands) 2022 2021 Total consolidated operating income (loss) $ (380) $ 2,230 Other income (expense), net (170) 1,600 Income (loss) from continuing operations before income taxes $ (550) $ 3,830 |
Basis of Presentation and Oth_3
Basis of Presentation and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of services | $ 26,339 | $ 23,424 |
Income from continuing operations before income taxes | (550) | 3,830 |
Income tax expense | 53 | 885 |
Income (loss) from continuing operations | (603) | 2,945 |
Net income | (603) | 51,417 |
Comprehensive income | $ (603) | 52,190 |
Pre-Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of services | 23,283 | |
Income from continuing operations before income taxes | 3,971 | |
Income tax expense | 922 | |
Income (loss) from continuing operations | 3,049 | |
Net income | 51,521 | |
Comprehensive income | 52,294 | |
Error Correction | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Cost of services | 141 | |
Income from continuing operations before income taxes | (141) | |
Income tax expense | (37) | |
Income (loss) from continuing operations | (104) | |
Net income | (104) | |
Comprehensive income | $ (104) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | Jul. 01, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Waived management fees | $ 60 |
Discontinued Operations, Held-for-sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sale proceeds | $ 1,940 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) From Discontinued Operations (Details) - Discontinued Operations, Held-for-sale $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue: | |
Revenue | $ 107,073 |
Operating expenses: | |
Selling, general and administrative | 10,702 |
Severance expense | 211 |
Total operating expenses | 36,561 |
Operating income | 70,512 |
Interest expense and other, net | (4,384) |
Income before income taxes | 66,128 |
Income tax expense | 17,656 |
Income from discontinued operations, net of tax | 48,472 |
Service revenue and other | |
Revenue: | |
Revenue | 100,674 |
Equipment revenue | |
Revenue: | |
Revenue | 6,399 |
Cost of services | |
Operating expenses: | |
Cost of services and cost of goods sold | 19,427 |
Cost of goods sold | |
Operating expenses: | |
Cost of services and cost of goods sold | $ 6,221 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Weighted average customer life | 6 years |
Remaining performance obligations | $ 3.9 |
Revenue remaining performance obligation, per year | $ 0.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 8,147 | $ 7,358 |
Contract payments | 338 | 1,114 |
Contract amortization | (182) | (709) |
Ending Balance | $ 8,303 | $ 7,763 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
SERP investments at fair value | $ 2,173 | $ 2,317 |
Cost method investments | 10,752 | 11,004 |
Equity method investments | 359 | 340 |
Total investments | $ 13,284 | $ 13,661 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
SERP investments | $ 801,000 | $ 801,000 | |
SERP investments at fair value | 2,173,000 | 2,317,000 | |
CoBank | |||
Schedule of Equity Method Investments [Line Items] | |||
SERP investments at fair value | 10,000,000 | $ 10,300,000 | |
Other nonoperating income (expense) | $ 100,000 | $ 1,000,000 | |
Percentage of patronage credit paid in cash | 75.00% | ||
Percentage of patronage credit paid in share | 25.00% | ||
Valley Network Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest, percentage | 20.00% | 20.00% | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties | $ 200,000 | ||
Related party costs | $ 28,200 | $ 500,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 1,068,977 | $ 1,028,233 | |
Less: accumulated depreciation and amortization | 487,436 | 474,071 | |
Property, plant and equipment, net | 581,541 | 554,162 | |
Depreciation expense | 14,500 | $ 13,000 | |
Land | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 3,771 | 3,771 | |
Land improvements | |||
Property, plant and equipment [Abstract] | |||
Estimated Useful Lives | 10 years | ||
Total property, plant and equipment | $ 3,483 | 3,478 | |
Buildings and structures | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 96,504 | 96,323 | |
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 | 45 years | ||
Cable and fiber | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 476,573 | 453,405 | |
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 | 30 years | ||
Equipment and software | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 383,619 | 391,293 | |
Equipment and software | Minimum | |||
Property, plant and equipment [Abstract] | |||
Estimated Useful Lives | 4 years | ||
Equipment and software | Maximum | |||
Property, plant and equipment [Abstract] | |||
Estimated Useful Lives | 8 years | ||
Plant in service | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 963,950 | 948,270 | |
Plant under construction | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 105,027 | $ 79,963 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 78,314 | $ 78,314 |
Gross carrying amount | 35,699 | 35,699 |
Accumulated amortization and other | (27,624) | (27,426) |
Total | 8,075 | 8,273 |
Total intangible assets, gross carrying amount | 117,257 | 117,257 |
Intangible assets, net | 89,633 | 89,831 |
Goodwill - Broadband | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, gross | 3,244 | 3,244 |
Goodwill | 3,244 | 3,244 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 6,811 | 6,811 |
Accumulated amortization and other | (751) | (672) |
Total | 6,060 | 6,139 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,425 | 28,425 |
Accumulated amortization and other | (26,564) | (26,451) |
Total | 1,861 | 1,974 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 463 | 463 |
Accumulated amortization and other | (309) | (303) |
Total | 154 | 160 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 64,334 | 64,334 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 13,839 | 13,839 |
Railroad crossing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 141 | $ 141 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.2 | $ 0.2 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Deposit for FCC spectrum licenses | $ 16,118 | $ 16,118 |
Prepaid maintenance and software expenses | 4,961 | 8,391 |
Broadband contract acquisition costs | 2,610 | 2,502 |
SERP investments | 801 | 801 |
Other | 2,153 | 2,018 |
Prepaid expenses and other | $ 26,643 | $ 29,830 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Broadband contract acquisition costs | $ 5,693 | $ 5,645 |
Prepaid maintenance and software expenses | 9,860 | 4,653 |
Deferred charges and other assets | $ 15,553 | $ 10,298 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued programming costs | $ 3,258 | $ 3,084 |
Sales and property taxes payable | 1,852 | 1,065 |
Restructuring accrual | 905 | 1,761 |
Other current liabilities | 8,274 | 8,739 |
Accrued liabilities and other | $ 14,289 | $ 14,649 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 19,449 | $ 19,749 |
FCC spectrum license obligations | 3,814 | 3,807 |
Noncurrent portion of financing leases | 1,513 | 1,614 |
Other | 860 | 461 |
Other liabilities | $ 25,636 | $ 25,631 |
Other Assets and Accrued Liab_7
Other Assets and Accrued Liabilities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | |
Workforce Reduction Program | ||||
Business Acquisition [Line Items] | ||||
Payments for restructuring | $ 800 | $ 0 | ||
FCC spectrum licenses | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 16,100 | $ 16,100 | $ 16,100 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 20 years | |
Operating lease, weighted average discount rate, percent | 4.40% | |
Finance lease, weighted average remaining lease term | 14 years | |
Finance lease, weighted average discount rate, percent | 5.20% | |
Operating lease, cost | $ 2.7 | $ 1.4 |
Finance lease, cost | 0.1 | 0.2 |
Operating lease, payments | 1.6 | 1.5 |
Right-of-use asset obtained in exchange for operating lease liability | 1.6 | 2.7 |
Sublease income | $ 5.4 | $ 2.4 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
2022 | $ 3,905 |
2023 | 5,223 |
2024 | 4,893 |
2025 | 4,696 |
2026 | 4,211 |
2027 and thereafter | 68,256 |
Total lease payments | 91,184 |
Less: Interest | 35,378 |
Present value of lease liabilities | 55,806 |
Finance Leases | |
2022 | 70 |
2023 | 176 |
2024 | 178 |
2025 | 180 |
2026 | 153 |
2027 and thereafter | 1,514 |
Total lease payments | 2,271 |
Less: Interest | 666 |
Present value of lease liabilities | 1,605 |
Total | |
2022 | 3,975 |
2023 | 5,399 |
2024 | 5,071 |
2025 | 4,876 |
2026 | 4,364 |
2027 and thereafter | 69,770 |
Total lease payments | 93,455 |
Less: Interest | 36,044 |
Present value of lease liabilities | $ 57,411 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 12,398 |
2023 | 13,849 |
2024 | 12,840 |
2025 | 11,908 |
2026 | 8,899 |
2027 and thereafter | 30,769 |
Total | $ 90,663 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Expected tax expense (benefit) at federal statutory | $ (115) | $ 804 |
State income tax expense (benefit), net of federal tax effect | (32) | 308 |
Excess tax deficiency (benefit) from share based compensation and other expense, net | 200 | (227) |
Income tax expense | $ 53 | $ 885 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Proceeds from income tax refunds | $ 0 | $ 800,000 |
Stock Compensation and Earnin_3
Stock Compensation and Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Income (loss) from continuing operations | $ (603) | $ 2,945 |
Total income from discontinued operations, net of tax | 0 | 48,472 |
Net income (loss) | $ (603) | $ 51,417 |
Basic weighted average shares outstanding (in shares) | 50,146 | 49,947 |
Basic net income per share - continuing operations (in dollars per share) | $ (0.01) | $ 0.06 |
Basic net income per share - discontinued operations (in dollars per share) | 0 | 0.97 |
Basic net income (loss) per share (in dollars per share) | $ (0.01) | $ 1.03 |
Effect from dilutive shares and options outstanding (in shares) | 0 | 134 |
Diluted weighted average shares outstanding (in shares) | 50,146 | 50,081 |
Diluted net income per share - continuing operations (in dollars per share) | $ (0.01) | $ 0.06 |
Diluted net income per share - discontinued operations (in dollars per share) | 0 | 0.97 |
Diluted net income (loss) per share (in dollars per share) | $ (0.01) | $ 1.03 |
Stock Compensation and Earnin_4
Stock Compensation and Earnings per Share - Narrative (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive awards outstanding (fewer than)(in shares) | 147,000 | 100,000 |
Relative Total Shareholder Return Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (as a percent) | 150.00% | |
Relative Total Shareholder Return Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, issued (in shares) | 0 | |
Employees | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 195,000 | |
Employees | Relative Total Shareholder Return Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 97,000 | |
Granted (in dollars per share) | $ 23.83 | |
Directors | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 48,000 | |
Employees And Directors | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 21.57 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
External revenue | ||
Service revenue and other | $ 64,414 | $ 59,691 |
Operating expenses | ||
Cost of services exclusive of depreciation and amortization | 26,339 | 23,424 |
Selling, general and administrative | 23,771 | 20,153 |
Restructuring expense | 0 | 618 |
Depreciation and amortization | 14,684 | 13,266 |
Operating income (loss) | (380) | 2,230 |
Operating Segments | ||
Operating expenses | ||
Selling, general and administrative | 23,771 | 20,153 |
Restructuring expense | 618 | |
Depreciation and amortization | 14,684 | 13,266 |
Total operating expenses | 64,794 | 57,461 |
Operating income (loss) | (380) | 2,230 |
Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 59,714 | 55,154 |
Operating expenses | ||
Selling, general and administrative | 13,489 | 10,725 |
Restructuring expense | 105 | |
Depreciation and amortization | 12,876 | 11,761 |
Total operating expenses | 51,533 | 44,868 |
Operating income (loss) | 8,181 | 10,286 |
Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,847 | 4,665 |
Operating expenses | ||
Selling, general and administrative | 318 | 234 |
Restructuring expense | 0 | |
Depreciation and amortization | 484 | 481 |
Total operating expenses | 2,094 | 1,963 |
Operating income (loss) | 2,753 | 2,702 |
Intersegment Eliminations | ||
External revenue | ||
Service revenue and other | 4 | 4,595 |
Intersegment Eliminations | Broadband | ||
External revenue | ||
Service revenue and other | 50 | 2,208 |
Intersegment Eliminations | Tower | ||
External revenue | ||
Service revenue and other | 101 | 2,515 |
Intersegment Eliminations | Corporate & Eliminations | ||
External revenue | ||
Service revenue and other | (147) | (128) |
Corporate, Non-Segment | ||
Operating expenses | ||
Selling, general and administrative | 9,964 | 9,194 |
Restructuring expense | 513 | |
Depreciation and amortization | 1,324 | 1,024 |
Total operating expenses | 11,167 | 10,630 |
Operating income (loss) | (11,314) | (10,758) |
Residential & SMB | Operating Segments | ||
External revenue | ||
Service revenue and other | 46,913 | 42,930 |
Residential & SMB | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 46,913 | 42,930 |
Residential & SMB | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Commercial Fiber | Operating Segments | ||
External revenue | ||
Service revenue and other | 9,062 | 6,385 |
Commercial Fiber | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 9,062 | 6,385 |
Commercial Fiber | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
RLEC & Other | Operating Segments | ||
External revenue | ||
Service revenue and other | 3,689 | 3,631 |
RLEC & Other | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 3,689 | 3,631 |
RLEC & Other | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Tower lease | Operating Segments | ||
External revenue | ||
Service revenue and other | 4,746 | 2,150 |
Tower lease | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 0 | 0 |
Tower lease | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,746 | 2,150 |
Service revenue and other | Operating Segments | ||
External revenue | ||
Service revenue and other | 64,410 | 55,096 |
Service revenue and other | Operating Segments | Broadband | ||
External revenue | ||
Service revenue and other | 59,664 | 52,946 |
Service revenue and other | Operating Segments | Tower | ||
External revenue | ||
Service revenue and other | 4,746 | 2,150 |
Cost of services | Operating Segments | ||
Operating expenses | ||
Cost of services exclusive of depreciation and amortization | 26,339 | 23,424 |
Cost of services | Operating Segments | Broadband | ||
Operating expenses | ||
Cost of services exclusive of depreciation and amortization | 25,168 | 22,277 |
Cost of services | Operating Segments | Tower | ||
Operating expenses | ||
Cost of services exclusive of depreciation and amortization | 1,292 | 1,248 |
Cost of services | Corporate, Non-Segment | ||
Operating expenses | ||
Cost of services exclusive of depreciation and amortization | $ (121) | $ (101) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||
Operating income (loss) | $ (380) | $ 2,230 |
Other income (expense), net | (170) | 1,600 |
Income (loss) from continuing operations before income taxes | $ (550) | $ 3,830 |
Subsequent Events (Details)
Subsequent Events (Details) - Forecast $ in Millions | 3 Months Ended |
Jun. 30, 2022USD ($) | |
Subsequent Event [Line Items] | |
Impairment of long-lived assets to be disposed of | $ 4 |
Termination costs | $ 1 |