Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 16, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NEW ULM TELECOM INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 5,101,334 | ||
Entity Public Float | $32,858,907 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 71557 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING REVENUES: | ||
Local Service | $6,487,362 | $6,680,799 |
Network Access | 11,649,277 | 12,196,235 |
Video | 8,310,923 | 7,327,031 |
Data | 8,644,399 | 7,548,004 |
Long Distance | 798,182 | 829,277 |
Other | 4,097,266 | 4,134,239 |
Total Operating Revenues | 39,987,409 | 38,715,585 |
OPERATING EXPENSES: | ||
Plant Operations (Excluding Depreciation and Amortization) | 7,745,069 | 7,711,075 |
Cost of Video | 7,047,980 | 6,432,420 |
Cost of Data | 1,625,716 | 1,142,991 |
Cost of Other Nonregulated Services | 2,122,838 | 2,089,975 |
Depreciation and Amortization | 9,551,320 | 9,155,694 |
Selling, General, and Administrative | 7,096,971 | 6,836,978 |
Total Operating Expenses | 35,189,894 | 33,369,133 |
OPERATING INCOME | 4,797,515 | 5,346,452 |
OTHER (EXPENSE) INCOME: | ||
Interest During Construction | 19,492 | 11,187 |
CoBank Patronage Dividends | 435,319 | 521,796 |
Interest Income | 119,728 | 155,304 |
Interest Expense | -937,989 | -1,381,792 |
Other Investment Income (Expense) | 230,144 | 181,607 |
Total Other Income (Expense) | -133,306 | -511,898 |
INCOME BEFORE INCOME TAXES | 4,664,209 | 4,834,554 |
INCOME TAXES | 1,919,465 | 1,980,439 |
NET INCOME | $2,744,744 | $2,854,115 |
BASIC AND DILUTED | ||
NET INCOME PER SHARE (in Dollars per share) | $0.54 | $0.56 |
DIVIDENDS PER SHARE (in Dollars per share) | $0.34 | $0.34 |
WEIGHTED AVERAGE SHARES OUTSTANDING (in Shares) | 5,097,401 | 5,111,012 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
NET INCOME | $2,744,744 | $2,854,115 |
OTHER COMPREHENSIVE INCOME | ||
Unrealized Gains on Interest Rate Swaps | 303,851 | |
Income Tax Expense Related to Unrealized Gains on Interest Rate Swaps | -124,538 | |
OTHER COMPREHENSIVE INCOME | 179,313 | |
COMPREHENSIVE INCOME | $2,744,744 | $3,033,428 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CURRENT ASSETS: | ||
Cash | $945,087 | $964,404 |
Receivables, Net of Allowance for Doubtful Accounts of $60,500 and $120,000 | 1,442,477 | 1,458,627 |
Income Taxes Receivable | 847,893 | |
Materials, Supplies, and Inventories | 2,227,925 | 2,535,046 |
Deferred Income Taxes | 785,605 | 761,076 |
Prepaid Expenses | 714,372 | 778,035 |
Total Current Assets | 6,963,359 | 6,497,188 |
INVESTMENTS & OTHER ASSETS: | ||
Goodwill | 39,805,349 | 39,805,349 |
Intangibles | 23,666,728 | 26,137,960 |
Other Investments | 7,079,362 | 6,731,959 |
Deferred Charges and Other Assets | 475,936 | 148,477 |
Total Investments and Other Assets | 71,027,375 | 72,823,745 |
PROPERTY, PLANT & EQUIPMENT: | ||
Telecommunications Plant | 115,100,273 | 108,677,838 |
Other Property & Equipment | 13,713,496 | 11,512,589 |
Video Plant | 9,566,806 | 9,444,324 |
Total Property, Plant and Equipment | 138,380,575 | 129,634,751 |
Less Accumulated Depreciation | 92,297,652 | 86,075,424 |
Net Property, Plant & Equipment | 46,082,923 | 43,559,327 |
TOTAL ASSETS | 124,073,657 | 122,880,260 |
CURRENT LIABILITIES: | ||
Current Portion of Long-Term Debt | 2,700,000 | 40,707,730 |
Accounts Payable | 3,049,999 | 1,792,608 |
Accrued Income Taxes | 114,017 | |
Other Accrued Taxes | 180,818 | 190,954 |
Deferred Compensation | 63,428 | 65,523 |
Accrued Compensation | 692,974 | 605,861 |
Other Accrued Liabilities | 1,528,499 | 1,468,010 |
Total Current Liabilities | 8,215,718 | 44,944,703 |
LONG-TERM DEBT, Less Current Portion | 36,944,471 | |
NONCURRENT LIABILITIES: | ||
Loan Guarantees | 297,475 | 274,649 |
Deferred Income Taxes | 19,161,144 | 19,418,249 |
Unrecognized Tax Benefit | 281,363 | 259,739 |
Other Accrued Liabilities | 276,857 | 107,765 |
Deferred Compensation | 846,631 | 921,446 |
Total Noncurrent Liabilities | 20,863,470 | 20,981,848 |
COMMITMENTS AND CONTINGENCIES: | ||
STOCKHOLDERS' EQUITY: | ||
Preferred Stock - $1.66 Par Value, 10,000,000 Shares Authorized, No Shares Issued and Outstanding | ||
Common Stock - $1.66 Par Value, 90,000,000 Shares Authorized, 5,101,334 and 5,089,534 Shares Issued and Outstanding | 8,502,223 | 8,482,556 |
Retained Earnings | 49,547,775 | 48,471,153 |
Total Stockholders' Equity | 58,049,998 | 56,953,709 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $124,073,657 | $122,880,260 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for Doubtful Accounts (in Dollars) | $60,500 | $120,000 |
Preferred stock par value (in Dollars per share) | $1.66 | $1.66 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock par value (in Dollars per share) | $1.66 | $1.66 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 5,101,334 | 5,089,534 |
Common stock, shares outstanding | 5,101,334 | 5,089,534 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $2,744,744 | $2,854,115 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 9,590,061 | 9,194,430 |
Undistributed Earnings of Other Equity Investment | -192,293 | -172,033 |
Noncash Patronage Refund | -148,337 | -130,449 |
Stock Issued in Lieu of Cash Payment | 91,000 | 99,400 |
Distributions from Equity Investments | 100,000 | 114,616 |
Changes in Assets and Liabilities: | ||
Receivables | 40,560 | 398,356 |
Income Taxes Receivable | -847,893 | 201,270 |
Materials, Supplies, and Inventories | 307,121 | -258,678 |
Prepaid Expenses | 56,663 | -174,770 |
Deferred Charges and Other Assets | -39,696 | |
Accounts Payable | 1,072,892 | -67,804 |
Accrued Income Taxes | -114,017 | 114,017 |
Other Accrued Taxes | -10,136 | -2,792 |
Other Accrued Liabilities | 316,694 | 77,020 |
Deferred Income Tax | -260,007 | -662,687 |
Deferred Compensation | -76,910 | -78,514 |
Net Cash Provided by Operating Activities | 12,670,142 | 11,465,801 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to Property, Plant, and Equipment, Net | -9,419,188 | -5,367,289 |
Other, Net | -83,947 | -81,558 |
Net Cash Used in Investing Activities | -9,503,135 | -5,448,847 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal Payments of Long-Term Debt | -42,552,266 | -4,113,000 |
Issuance of Long-Term Debt | 39,644,471 | |
Loan Origination Fees | -390,610 | |
Repurchase of Common Stock | -180,180 | |
Changes in Revolving Credit Facility | 1,844,536 | -1,786,655 |
Dividends Paid | -1,732,455 | -1,722,565 |
Net Cash Used in Financing Activities | -3,186,324 | -7,802,400 |
NET INCREASE (DECREASE) IN CASH | -19,317 | -1,785,446 |
CASH at Beginning of Period | 964,404 | 2,749,850 |
CASH at End of Period | 945,087 | 964,404 |
Supplemental cash flow information: | ||
Cash paid for interest | 883,079 | 1,347,065 |
Net cash (received) paid for income taxes | $3,142,664 | $2,390,890 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS` EQUITY (USD $) | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
BALANCE at Dec. 31, 2012 | $8,506,530 | ($179,313) | $47,403,409 | $55,730,626 |
BALANCE (in Shares) at Dec. 31, 2012 | 5,103,918 | |||
Directors' Stock Plan | 23,693 | 68,707 | 92,400 | |
Directors' Stock Plan (in Shares) | 14,216 | |||
Retirement of Stock from BCS Holdings | -47,667 | -132,513 | -180,180 | |
Retirement of Stock from BCS Holdings (in Shares) | -28,600 | |||
Net Income | 2,854,115 | 2,854,115 | ||
Dividends | -1,722,565 | -1,722,565 | ||
Other Comprehensive Income | 179,313 | 179,313 | ||
BALANCE at Dec. 31, 2013 | 8,482,556 | 48,471,153 | 56,953,709 | |
BALANCE (in Shares) at Dec. 31, 2013 | 5,089,534 | |||
Directors' Stock Plan | 19,667 | 64,333 | 84,000 | |
Directors' Stock Plan (in Shares) | 11,800 | |||
Net Income | 2,744,744 | 2,744,744 | ||
Dividends | -1,732,455 | -1,732,455 | ||
Other Comprehensive Income | ||||
BALANCE at Dec. 31, 2014 | $8,502,223 | $49,547,775 | $58,049,998 | |
BALANCE (in Shares) at Dec. 31, 2014 | 5,101,334 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Significant Accounting Policies [Text Block] | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Description of Business | ||||||
NU Telecom is a diversified communications company headquartered in New Ulm, Minnesota with more than 109 years of experience in the local telephone exchange and telecommunications business. Our principal line of business is the operation of five local telephone companies and the operation of two CLEC telephone companies. Our ILEC businesses consist of connecting customers to our state-of-the-art, fiber-rich communications network, providing managed services, switched service and dedicated private lines, connecting customers to long distance service providers and providing many other services associated with ILECs. Our ILECs also provide IPTV, digital TV and CATV, Internet access services, including high-speed broadband access, and long distance service. We also install and maintain communications systems to the areas in and around our ILEC service territories in southern Minnesota and northern Iowa. | ||||||
Basis of Presentation and Principles of Consolidation | ||||||
Our accounting policies conform with GAAP and, where applicable, to the accounting principles as prescribed by federal and state telephone utility regulatory authorities. We presently give accounting recognition to the actions of regulators where appropriate in preparing general purpose financial statements for most public utilities. In general, the type of regulation covered by this statement permits rates (prices) for some services to be set at levels intended to recover the estimated costs of providing regulated services or products, including the cost of capital (interest costs and a provision for earnings on stockholders’ investments). | ||||||
Our consolidated financial statements report the financial condition and results of operations for NU Telecom and its subsidiaries in one business segment: the Telecom Segment. Inter-company transactions have been eliminated from the consolidated financial statements. | ||||||
Classification of Costs and Expenses | ||||||
Cost of services includes all costs related to delivery of communication services and products. These operating costs include all costs of performing services and providing related products including engineering, network monitoring and transportation costs. | ||||||
Selling, general and administrative expenses include direct and indirect selling expenses, customer service, billing and collections, advertising and all other general and administrative costs associated with the operations of the business. | ||||||
Use of Estimates | ||||||
Preparing consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. The estimates and assumption used in the accompanying consolidated financial statements are based on our management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions. | ||||||
Revenue Recognition | ||||||
We recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery of the product has occurred or a service has been provided, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. | ||||||
Revenues are earned from our customers primarily through the connection to our networks, digital and commercial TV programming, Internet services (high-speed broadband), and hosted and managed services. Revenues for these services are billed based on set rates for monthly service or based on the amount of time the customer is utilizing our facilities. The revenue for these services is recognized when the service is rendered. | ||||||
Revenues earned from IXCs accessing our network are based on the utilization of our network by these carriers as measured by minutes of use on the network or special access to the network by the individual carriers. Revenues are billed at tariffed access rates for both interstate and intrastate calls. Revenues for these services are recognized based on the period the access is provided. | ||||||
Interstate access rates are established by a nationwide pooling of companies known as NECA. The FCC established NECA in 1983 to develop and administer interstate access service rates, terms and conditions. Revenues are pooled and redistributed on the basis of a company's actual or average costs. New Ulm’s and SETC’s settlements from the pools are based on its actual costs to provide service, while the settlements for NU Telecom subsidiaries – WTC, PTC and HTC are based on nationwide average schedules. Access revenues for New Ulm and SETC include an estimate of a cost study each year that is trued-up subsequent to the end of any given year. Our management believes the estimates included in our preliminary cost study are reasonable. We cannot predict the future impact that industry or regulatory changes will have on interstate access revenues. | ||||||
Intrastate access rates are filed with state regulatory commissions in Minnesota and Iowa. | ||||||
We derive revenues from the sale, installation and servicing of communication systems. In accordance with GAAP, these deliverables are accounted for separately. We recognize revenue from customer contracts for sales and installations using the completed-contract method, which recognizes income when the contract is substantially complete. We recognize rental revenues over the rental period. | ||||||
Receivables | ||||||
As of December 31, 2014 and 2013, our consolidated receivables totaled $1,442,477 and $1,458,627, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2014 and 2013 are recorded at their fair value. As there may be exposure or risk with receivables, we routinely monitor our receivables and adjust the allowance for doubtful accounts when events occur that may potentially affect the collection of our receivables. | ||||||
Allowance for Doubtful Accounts | ||||||
We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In making the determination of the appropriate allowance for doubtful accounts, we consider specific accounts, historical write-offs, changes in customer relationships, credit worthiness and concentrations of credit risk. Specific accounts receivable are written off once a determination is made that the account is uncollectible. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. | ||||||
The activity in our allowance for doubtful accounts includes the following: | ||||||
Year Ended December 31 | ||||||
2014 | 2013 | |||||
Balance at beginning of year | $ | 120,000 | $ | 175,705 | ||
Additions charged to costs and expenses | 226,439 | 185,803 | ||||
Accounts written off | -285,939 | -241,508 | ||||
Balance at end of year | $ | 60,500 | $ | 120,000 | ||
Inventories | ||||||
Inventory includes parts, materials and supplies stored in our warehouses to support basic levels of service and maintenance as well as scheduled capital projects and equipment awaiting configuration for customers. Inventory also includes (i) parts and equipment shipped directly from vendors to customer locations while in transit and (ii) parts and equipment returned from customers that are being returned to vendors for credit. Our inventory value as of December 31, 2014 and 2013 was $2,227,925 and $2,535,046. | ||||||
We value inventory using the lower of cost or market method. Similar to our allowance for doubtful accounts, we make estimates related to the valuation of inventory. As of December 31, 2014 and 2013, we had no inventory reserve. We adjust our inventory carrying value for estimated obsolescence or unmarketable inventory to the estimated market value based upon assumptions about future demand and market conditions. As market and other conditions change, we may establish additional inventory reserves at a time when the facts that give rise to a lower value are warranted. We use the first-in, first-out method of inventory costing for our non-retail inventory. We use the average cost method of inventory costing for our retail inventory. | ||||||
Fair Value Measurements | ||||||
We have adopted the rules prescribed under GAAP for our financial assets and liabilities. GAAP includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: | ||||||
Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||
Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market–corroborated inputs that are derived principally from or corroborated by observable market data. | ||||||
Level 3: Inputs are derived from valuation techniques where one or more significant inputs or value drivers are unobservable. | ||||||
We have used financial derivative instruments to manage our overall cash flow exposure to fluctuations in interest rates. We accounted for derivative instruments in accordance with GAAP that requires derivative instruments to be recorded on the balance sheet at fair value. Changes in fair value of derivative instruments must be recognized in earnings unless specific hedge accounting criteria are met, in which case, the gains and losses are included in other comprehensive income rather than in earnings. | ||||||
We previously had entered into interest rate swaps with our lender CoBank to manage our cash flow exposure to fluctuations in interest rates. These instruments were designated as cash flow hedges and were effective at mitigating the risk of fluctuations on interest rates in the market place. Any gains or losses related to changes in the fair value of these derivatives were accounted for as a component of accumulated other comprehensive income (loss) for as long as the hedge remained effective. | ||||||
We previously had entered into interest rate swaps with our lender CoBank to manage our cash flow exposure to fluctuations in interest rates. These instruments were designated as cash flow hedges and were effective at mitigating the risk of fluctuations on interest rates in the market place. Any gains or losses related to changes in the fair value of these derivatives were accounted for as a component of accumulated other comprehensive income (loss) for as long as the hedge remained effective. | ||||||
The fair value of our interest rate swap agreements is discussed in Note 5 – “Interest Rate Swaps” to the Consolidated Financial Statements of this Annual Report on Form 10-K. The fair value of our swap agreements were determined based on Level 2 inputs. | ||||||
Property, Plant and Equipment | ||||||
We record impairment losses on long‑lived assets used in operations when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. In assessing the recoverability of long-lived assets, we compare the carrying value to the undiscounted future cash flows the assets are expected to generate. If the total of the undiscounted future cash flows is less than the carrying amount of the assets, we would write down those assets based on the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by calculating the discounted future cash flows expected from those assets. Changes in these estimates could have a material adverse effect on the assessment of long-lived assets, thereby requiring a write-down of the assets. Write-downs of long-lived assets are recorded as impairment charges and are a component of operating expenses. We have reviewed our long-lived assets and concluded that no impairment charge on our long-lived assets is necessary. | ||||||
We use the group life method (mass asset accounting) to depreciate the assets of our telephone companies. Telephone plant acquired in a given year is grouped into similar categories and depreciated over the remaining estimated useful life of the group. When an asset is retired, both the asset and the accumulated depreciation associated with that asset are removed from the books. Due to rapid changes in technology, selecting the estimated economic life of telecommunications plant and equipment requires a significant amount of judgment. We periodically review data on expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. We have not made any significant changes to the lives of these assets in the two year period ended December 31, 2014. | ||||||
Goodwill and Intangible Assets | ||||||
We amortize our definite-lived intangible assets over their estimated useful lives. Customer lists are amortized over fourteen to fifteen years, regulatory rights are amortized over fifteen years and non-competition agreements are amortized over five years. Intangible assets with finite lives are amortized over their respective estimated useful lives. In accordance with GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but tested for impairment at least annually. See Note 3 – “Goodwill and Intangibles” to the Consolidated Financial Statements of this Annual Report on Form 10-K for a more detailed discussion of the intangible assets and goodwill. Our goodwill balance was $39,805,349 as of December 31, 2014 and 2013. In the fourth quarter of 2014 and 2013 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2014 and 2013. | ||||||
Investments and Other Assets | ||||||
We are a co-investor with other rural telephone companies in several partnerships and limited liability companies. We use the equity method of accounting for these investments that reflects original cost and recognition of our share of the net income or losses from the respective operations. | ||||||
Long-term investments in other companies that are not intended for resale or are not readily marketable are valued at the lower of cost or net realizable value. | ||||||
Other Financial Instruments | ||||||
Other Investments – It is difficult to estimate a fair value for equity investments in companies carried on the equity or cost basis due to a lack of quoted market prices. We conducted an evaluation of our investments in all of our companies in connection with the preparation of our audited financial statements at December 31, 2014. We believe the carrying value of our investments is not impaired. | ||||||
Debt– We estimate the fair value of our long-term debt based on the discounted future cash flows we expect to pay using current rates of borrowing rates for similar types of debt. Fair value of the debt approximates carrying value. | ||||||
Other Financial Instruments– Our financial instruments also include cash equivalents, trade accounts receivable and accounts payable where the current carrying amounts approximate fair market value. | ||||||
Advertising Expense | ||||||
Advertising is expensed as incurred. Advertising expense charged to operations was $191,259 and $193,769 in 2014 and 2013. | ||||||
Interest During Construction | ||||||
We include an average cost of debt for the construction of plant in our communications plant accounts. | ||||||
Income Taxes | ||||||
We account for income taxes in accordance with GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements and operating and tax credit carryforwards. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We recognize interest and penalties related to income tax matters as income tax expense. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. | ||||||
GAAP requires us to recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. See Note 6 – “Income Taxes” to the Consolidated Financial Statements of this Annual Report on Form 10-K for additional information regarding income taxes. | ||||||
Collection of Taxes from Customers | ||||||
Sales, excise and other taxes are imposed on most of our sales to nonexempt customers. We collect these taxes from our customers and remit the entire amounts to governmental authorities. Our accounting policies dictate that we exclude these taxes collected and remitted from our revenues and expenses. | ||||||
Credit Risk | ||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments and receivables. We deposit some of our cash investments in high credit quality financial institutions accounts which, at times, may exceed federally insured limits. We have not experienced any losses in these accounts and do not believe we are exposed to any significant credit risk. Concentrations of credit risk with respect to trade receivables are limited due to our large number of customers. | ||||||
Earnings And Dividends Per Share | ||||||
Basic earnings per share (EPS) are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Our basic and diluted EPS are based on our weighted average number of shares outstanding of 5,097,401 and 5,111,012 for the periods ended December 31, 2014 and 2013. | ||||||
Dividends per share have been declared quarterly by the NU Telecom Board of Directors. | ||||||
Recent Accounting Developments | ||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers” and created a new topic in the FASB Accounting Standards Codification, Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing United States GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our consolidated financial statements and related disclosures. | ||||||
In the first quarter of 2013, the FASB issued ASU 2013-02 to improve the disclosure of reclassifications out of accumulated other comprehensive income. The Update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Also, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income (only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period) either on the face of the statement where net income is presented or in the notes. The adoption of this guidance did not have a material impact on our disclosures or consolidated financial statements. | ||||||
We have reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of operations. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property, Plant and Equipment Disclosure [Text Block] | NOTE 2 – PROPERTY, PLANT AND EQUIPMENT | ||||||
Property, plant and equipment as of December 31, 2014 and 2013, include the following: | |||||||
2014 | 2013 | ||||||
2014 | 2013 | ||||||
Telecommunications Plant: | |||||||
Land | $ | 494,082 | $ | 494,082 | |||
Buildings | 8,947,763 | 8,947,763 | |||||
Other Support Assets | 11,114,886 | 10,767,432 | |||||
Central Office and Circuit Equipment | 44,446,845 | 42,654,535 | |||||
Cable and Wire Facilities | 49,012,778 | 45,222,512 | |||||
Other Plant and Equipment | 404,883 | 404,883 | |||||
Plant Under Construction | 679,036 | 186,631 | |||||
Telecommunications Plant | 115,100,273 | 108,677,838 | |||||
Other Property | 13,713,496 | 11,512,589 | |||||
Video Plant | 9,566,806 | 9,444,324 | |||||
Total Property, Plant and Equipment | $ | 138,380,575 | $ | 129,634,751 | |||
Depreciation is computed using the straight-line method based on the estimated service or remaining useful lives of the various classes of depreciable assets. Depreciation expense was $7,080,088 and $6,684,461 in 2014 and 2013. The composite depreciation rates on communications plant and equipment for the two years ended December 31, 2014 and 2013 were 5.2% and 5.2%. Other property and video plant is depreciated over estimated useful lives of three to twenty-five years. |
GOODWILL_AND_INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 3 - GOODWILL AND INTANGIBLES | |||||||||||||
We account for goodwill and other intangible assets under GAAP. Under GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment (i) on at least an annual basis and (ii) when changes in circumstances indicate that the fair value of goodwill may be below its carrying value. Our goodwill totaled $39,805,349 at December 31, 2014 and 2013. | ||||||||||||||
As required by GAAP, we do not amortize goodwill and other intangible assets with indefinite lives, but test for impairment on an annual basis or earlier if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying amount. These circumstances include, but are not limited to (i) a significant adverse change in the business climate, (ii) unanticipated competition or (iii) an adverse action or assessment by a regulator. Determining impairment involves estimating the fair value of a reporting unit using a combination of (i) the income or DCF approach and (ii) the market approach that utilizes comparable companies’ data. If the carrying amount of a reporting unit exceeds its fair value, the amount of the impairment loss must be measured. The impairment loss is calculated by comparing the implied fair value of the reporting unit’s goodwill to its carrying amount. In calculating the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied value of goodwill. We recognize impairment loss when the carrying amount of goodwill exceeds its implied fair value. | ||||||||||||||
In 2014 and 2013, we engaged an independent valuation firm to complete our annual impairment testing for existing goodwill. For 2014 and 2013, the testing results indicated no impairment charge to goodwill as the determined fair value was sufficient to pass the first step of the impairment test. | ||||||||||||||
Our intangible assets subject to amortization consist of acquired customer relationships, regulatory rights, trade name and a non-competition agreement. We amortize intangible assets with finite lives over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment. In addition, we periodically reassess the carrying value, useful lives and classifications of our identifiable intangible assets. The components of our identified intangible assets are as follows: | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Gross | Gross | |||||||||||||
Useful | Carrying | Accumulated | Carrying | Accumulated | ||||||||||
Lives | Amount | Amortization | Amount | Amortization | ||||||||||
Definite-Lived Intangible Assets | ||||||||||||||
Customers Relationships | 14-15 yrs | $ | 29,278,445 | $ | 11,087,066 | $ | 29,278,445 | $ | 8,996,498 | |||||
Regulatory Rights | 15 yrs | 4,000,000 | 1,866,651 | 4,000,000 | 1,599,987 | |||||||||
Non-Competition Agreement | 5 yrs | - | - | 800,000 | 800,000 | |||||||||
Trade Name | 3-5 yrs | 570,000 | 228,000 | 1,370,000 | 914,000 | |||||||||
Indefinitely-Lived Intangible Assets | ||||||||||||||
Video Franchise | 3,000,000 | - | 3,000,000 | - | ||||||||||
Total | $ | 36,848,445 | $ | 13,181,717 | $ | 38,448,445 | $ | 12,310,485 | ||||||
Net Identified Intangible Assets | $ | 23,666,728 | $ | 26,137,960 | ||||||||||
Amortization expense related to the definite-lived assets was $2,471,232 for 2014 and $2,471,233 for 2013. Amortization expense for the next five years is estimated to be: | ||||||||||||||
2015 | $ | 2,471,233 | ||||||||||||
2016 | $ | 2,469,256 | ||||||||||||
2017 | $ | 2,469,083 | ||||||||||||
2018 | $ | 2,355,083 | ||||||||||||
2019 | $ | 2,355,083 | ||||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Disclosure Text Block [Abstract] | ||||||
Long-term Debt [Text Block] | NOTE 4 - LONG-TERM DEBT | |||||
Substantially all of our assets are pledged as security for our long-term debt under loan agreements with CoBank. These mortgage notes are required to be paid in quarterly installments covering principal and interest, beginning in the year of issue and maturing on December 31, 2021. | ||||||
On December 31, 2014, we entered into an Amended and Restated MLA with CoBank. The MLA refinances and replaces the existing credit facility between CoBank and NU Telecom and the subsidiaries of NU Telecom. NU Telecom’s subsidiary HTC was a borrower under the prior credit facility, but NU Telecom is now the sole borrower under the new MLA. At December 31, 2014 we were in compliance with all the stipulated financial ratios in our loan agreements. | ||||||
Per our previous MLA with CoBank, our current outstanding debt had a balloon maturity date on December 31, 2014. At December 31, 2013, all of our outstanding debt became current. Due to the balloon maturity, we notified CoBank that we would be in violation of our debt service coverage ratio in our loan covenants and also notified them that it was our intent to refinance the debt prior to December 31, 2014. Due to these circumstances, CoBank provided a waiver letter of the debt service coverage ratio in our loan covenants effective December 31, 2013. With this waiver letter, we were in compliance with all the stipulated financial ratios in our loan agreements as of December 31, 2013. | ||||||
There are security and loan agreements underlying our current CoBank credit facility that contain restrictions on our distributions to stockholders and investment in, or loans, to others. In addition, we are required to maintain financial ratios for total leverage, debt service coverage, equity to total assets, fixed coverage and maximum annual capital expenditures. | ||||||
Secured Credit Facility: | ||||||
On December 31, 2014, NU Telecom entered into an Amended and Restated MLA with CoBank. The new MLA refinances and replaces the existing credit facility between CoBank and NU Telecom and the subsidiaries of NU Telecom. NU Telecom’s subsidiary HTC was a borrower under the prior credit facility, but NU Telecom is now the sole borrower under the new MLA. There are two loans under the new MLA, which include a $35 million term loan and a $9 million revolver loan. Also, under the new MLA, NU Telecom has the ability to either increase the amount of the commitment under the revolver loan by up to $6 million in a single increase, or add an incremental term loan up to $6 million. | ||||||
MLA RX0583 | ||||||
● RX0583-T2A - $9,000,000 revolving note with interest payable monthly. Final maturity date of the note is December 31, 2021. We currently have drawn $4,644,471 on this revolving note as of December 31, 2014. | ||||||
● RX0583-T3A - $35,000,000 term note with interest payable monthly. Final maturity date of the note is December 31, 2021. Twenty-eight quarterly principal payments of $675,000 are due commencing March 31, 2015 through December 31, 2021. A final balloon payment of $16,100,000 is due at maturity of the note on December 31, 2021. | ||||||
RX0583-T2A and RX0583-T3A initially bear interest at a “LIBOR Margin” rate equal to 3.25 percent over the applicable LIBOR rate. The LIBOR Margin decreases as our “Leverage Ratio” decreases. | ||||||
Within 180 days after the closing date of December 31, 2014, NU Telecom must enter into interest rate protection agreements in form and substance reasonably satisfactory to CoBank so as to fix or limit interest rates payable by NU Telecom at all times to at least 40% of the outstanding principal balance of Loan RX0583-T3A for an initial average weighted life of at least three years. | ||||||
NU Telecom and its respective subsidiaries also have entered into security agreements under which substantially all the assets of NU Telecom and its respective subsidiaries have been pledged to CoBank as collateral. In addition, NU Telecom and its respective subsidiaries have guaranteed all the obligations under the credit facility. | ||||||
Our new loan agreements include restrictions on our ability to pay cash dividends to our stockholders. However, we are allowed to pay dividends (a) (i) in an amount up to $2,100,000 in any year if our “Total Leverage Ratio,” that is, the ratio of our “Indebtedness” to “EBITDA” – as defined in the loan documents) is greater than 2.50 to 1.00, and (ii) in any amount if our Total Leverage Ratio is less than 2.50 to 1.00, and (b) in either case, if we are not in default or potential default under the loan agreements. | ||||||
Our credit facility contains restrictions that, among other things, limits or restricts our ability to enter into guarantees and contingent liabilities, incur additional debt, issue stock, transact asset sales, transfers or dispositions, and engage in mergers and acquisitions, without CoBank approval. | ||||||
Long-term debt is as follows: | 2014 | 2013 | ||||
Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $675,000 (beginning on March 31, 2015), plus a notional variable rate of interest through December 31, 2021. | $ | 35,000,000 | $ | - | ||
Secured seven-year revolving credit facility of up to $9,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2021. | 4,644,471 | - | ||||
Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $250,000, plus a notional variable rate of interest through December 31, 2014. | - | 10,500,000 | ||||
Secured seven-year revolving credit facility of up to $10,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2014. | - | 6,434,730 | ||||
Secured two-year reducing revolving credit facility to CoBank, ACB in quarterly installments of $225,000 (beginning on June 30, 2013), plus a notional variable rate of interest through December 31, 2014. | - | 3,825,000 | ||||
Secured seven-year reducing revolving credit facility to CoBank, ACB in quarterly installments of $609,500 (beginning in 2010), plus a notional variable rate of interest through December 31, 2014. | - | 19,948,000 | ||||
Secured seven-year revolving credit facility of up to $2,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2014. | - | - | ||||
39,644,471 | 40,707,730 | |||||
Less: Amount due within one year | 2,700,000 | 40,707,730 | ||||
Total Long Term Debt | $ | 36,944,471 | $ | - | ||
Our credit facility requires us to comply with specified financial ratios and tests. These financial ratios and tests include total leverage ratio, debt service coverage ratio, equity to total assets ratio, fixed coverage ratio and maximum annual capital expenditures tests. | ||||||
As described in Note 5 – “Interest Rate Swaps” to the Consolidated Financial Statements of this Annual Report on Form 10-K, we had entered into interest rate swaps that effectively fixed our interest rates. As of June 30, 2013 the remaining swap matured and we currently have no interest rate swaps in effect. The remaining debt of $44.0 million ($4.4 million available under the revolving credit facilities and $39.6 million currently outstanding) remains subject to variable interest rates at an effective weighted average interest rate of 3.42%, as of December 31, 2014. | ||||||
Required principal payments are as follows: | ||||||
2015 | $ | 2,700,000 | ||||
2016 | $ | 2,700,000 | ||||
2017 | $ | 2,700,000 | ||||
2018 | $ | 2,700,000 | ||||
2019 | $ | 2,700,000 | ||||
INTEREST_RATE_SWAPS
INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 5 – INTEREST RATE SWAPS |
We assess interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. | |
We generally use variable-rate debt to finance our operations, capital expenditures and acquisitions. These variable-rate debt obligations expose us to variability in interest payments due to changes in interest rates. The terms of our credit facility with CoBank required that we enter into interest rate agreements designed to protect us against fluctuations in interest rates, in an aggregate principal amount and for a duration determined under the credit facility. | |
To meet this objective, we previously had entered into Interest Rate Swap Agreements with CoBank. Under these Interest Rate Swap Agreements and subsequent swaps that each covered a specified notional dollar amount, we had changed the variable-rate cash flow exposure on the debt obligations to fixed cash flows. Under the terms of those interest rate swaps, we paid a fixed contractual interest rate and (i) made an additional payment if the LIBOR variable rate payment was below a contractual rate or (ii) received a payment if the LIBOR variable rate payment was above the contractual rate. | |
As previously stated, our last remaining swap matured as of June 30, 2013 and we currently have no interest rate swaps in effect. | |
Each month, we made interest payments to CoBank under its loan agreements based on the current applicable LIBOR Rate, plus the contractual LIBOR margin then in effect with respect to each applicable loan, without reflecting any interest rate swaps. At the end of each calendar quarter, CoBank adjusted our aggregate interest payments based upon the difference, if any, between the amounts paid by us during the quarter and the current effective interest rate. Net interest payments are reported in our consolidated income statement as interest expense. | |
Pursuant to these interest rate swap agreements, we previously entered into interest rate swaps covering (i) $39.0 million of our aggregated indebtedness to CoBank effective March 19, 2008 and (ii) an additional $6.0 million of our aggregated indebtedness to CoBank effective June 23, 2008. These swaps effectively locked in the interest rate on (i) $6.0 million of variable-rate debt through March 2011, (ii) $33.0 million of variable-rate debt through March 2013, (iii) $3.0 million of variable-rate debt through June 2011 and (iv) $3.0 million of variable-rate debt through June 2013. | |
On March 31, 2013, $33,000,000 of our swaps matured on Loan RX0583-T1 ($11,250,000) and Loan RX0584-T1 ($21,750,000). No gain or loss was recognized on these swaps as they had reached their full maturities. | |
On June 30, 2013, $3,000,000 of our swaps matured on Loan RX0583-T2. No gain or loss was recognized on this swap as it had reached its full maturity. | |
These interest rate swaps qualified as cash flow hedges for accounting purposes under GAAP. We had reflected the effect of these hedging transactions in the financial statements. The unrealized gains were reported in other comprehensive income. If we had terminated our interest rate swap agreements, the cumulative change in fair value at the date of termination would be reclassified from accumulated other comprehensive income, which is classified in stockholders’ equity, into earnings on the consolidated statements of income. | |
The fair value of the Company’s interest rate swap agreements were determined based on valuations received from CoBank and were based on the present value of expected future cash flows using discount rates appropriate with the terms of the swap agreements. The fair value indicates an estimated amount we would be required to pay if the contracts were canceled or transferred to other parties. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Income Tax Disclosure [Text Block] | NOTE 6 - INCOME TAXES | |||||
Income taxes recorded in our consolidated statements of income consists of the following: | ||||||
2014 | 2013 | |||||
Taxes currently payable | ||||||
Federal | $ | 1,591,326 | $ | 2,114,852 | ||
State | 588,146 | 589,491 | ||||
Deferred Income Taxes | -260,007 | -723,904 | ||||
Total Income Tax Expense (Benefit) | $ | 1,919,465 | $ | 1,980,439 | ||
We account for income taxes in accordance with GAAP. As required by GAAP, we recognize the financial statement benefit of tax positions only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. | ||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||
2014 | 2013 | |||||
Balance Beginning of Year | $ | 259,739 | $ | 143,866 | ||
Net Increases | ||||||
Prior Period Tax Positions | 21,624 | 115,873 | ||||
Net Decreases | ||||||
Prior Period Tax Positions | - | - | ||||
Settlements | - | - | ||||
Balance at End of Year | $ | 281,363 | $ | 259,739 | ||
As of December 31, 2014 we had $281,363 of unrecognized tax benefits net of a federal benefit of $95,663, which if recognized would affect the effective tax rate. As of December 31, 2013 we had $259,739 of unrecognized tax benefits net of a federal tax benefit of $88,311, which if recognized would affect the effective tax rate. A petition related to HCC’s 2006 Minnesota tax return has been filed in Minnesota Tax Court. It is unknown when this matter will be resolved. | ||||||
We are primarily subject to United States, Minnesota, Nebraska and Iowa income taxes. Tax years subsequent to 2010 remain open to examination by federal and state tax authorities. Our policy is to recognize interest and penalties related to income tax matters as income tax expense. As of December 31, 2014 and 2013 we had $89,910 and $68,286 of accrued interest that related to income tax matters. | ||||||
The differences between the statutory federal tax rate and the effective tax rate were as follows: | ||||||
2014 | 2013 | |||||
Statutory Tax Rate | 35 | % | 35 | % | ||
Effect of: | ||||||
Surtax Exemption | -1 | -1 | ||||
State Income Taxes Net of Federal Tax Benefit | 6.97 | 6.74 | ||||
Uncertain Tax Positions | 0.3 | 0.27 | ||||
Permanent Differences and Other, Net | -0.12 | -0.05 | ||||
Effective tax rate | 41.15 | % | 40.96 | % | ||
Deferred income taxes and unrecognized tax benefits reflected in our consolidated balance sheets are summarized as follows: | ||||||
2014 | 2013 | |||||
Current Deferred Tax (Assets) / Liabilities | ||||||
Accrued Expenses | $ | -687,725 | $ | -647,766 | ||
Deferred Compensation | -25,563 | -26,408 | ||||
Other | -72,317 | -86,902 | ||||
Total Current Deferred Tax (Asset) / Liabilities | -785,605 | -761,076 | ||||
Non-Current Deferred Tax (Asset) / Liabilities | ||||||
Fixed Assets | 10,338,127 | 9,633,907 | ||||
Intangible Assets | 8,297,427 | 9,278,601 | ||||
Deferred Compensation | -341,223 | -371,370 | ||||
Partnership Basis | 866,813 | 877,111 | ||||
Subtotal Deferred Tax (Assets) / Liabilities Long-Term | 19,161,144 | 19,418,249 | ||||
Unrecognized Tax Benefit | 281,363 | 259,739 | ||||
Total Deferred Tax (Assets) / Liabilities Long-Term | 19,442,507 | 19,677,988 | ||||
Net Deferred Tax Liability | $ | 18,656,902 | $ | 18,916,912 | ||
RETIREMENT_PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 7 - RETIREMENT PLAN |
We have a 401(k) employee savings plan in effect for employees who meet age and service requirements. Our contributions to our 401(k) employee savings plan were $469,306 and $449,890 in 2014 and 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 8 – COMMITMENTS AND CONTINGENCIES |
Over the course of 2014, NU Telecom received notice of disputes from several IXCs, and has subsequently been named in litigation regarding traffic exchanged between our companies and specifically the classification of IntraMTA wireless traffic related to access charges. This litigation is an industry-wide dispute affecting numerous telecom companies. NU Telecom is working with other telecom companies towards a resolution of the litigation at both the federal and state levels. We cannot currently predict the outcome of this litigation or its impact to our company. | |
We did not experience any changes to material contractual obligations in the year ended December 31, 2014. | |
Our capital budget for 2015 is approximately $6,600,000 and will be financed through internally generated funds. |
NONCASH_INVESTING_ACTIVITIES
NONCASH INVESTING ACTIVITIES | 12 Months Ended |
Dec. 31, 2014 | |
Noncash Investing Activities [Abstract] | |
Noncash Investing Activities [Text Block] | NOTE 9 - NONCASH INVESTING ACTIVITIES |
Noncash investing activities included $438,744 and $254,245 during the years ended December 31, 2014 and 2013. These activities related to plant and equipment additions placed in service and are recorded in our accounts payable at year-end. |
OTHER_INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Other Investments [Abstract] | |
Other Investments [Text Block] | NOTE 10 – OTHER INVESTMENTS |
We are a co-investor with other rural telephone companies in several partnerships and limited liability companies. These joint ventures make it possible to offer services to customers, including digital video services and fiber optic transport services that we would have difficulty offering on our own. These joint ventures also make it possible to invest in new technologies with a lower level of financial risk. We recognize income and losses from these investments on the equity method of accounting. For a listing of our investments, see Note 13 – “Segment Information” to the Consolidated Financial Statements of this Annual Report on Form 10-K. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2014 | |
Guarantees [Abstract] | |
Guarantees [Text Block] | NOTE 11 - GUARANTEES |
On September 30, 2011, Fibercomm, LC refinanced two existing loans with American State Bank into a ten-year loan, maturing on September 30, 2021. As of December 31, 2014, we have recorded a liability of $297,475 in connection with the guarantee on this new loan. This guarantee may be exercised if FiberComm, LC does not make its required payments on this note. |
DEFERRED_COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 12 – DEFERRED COMPENSATION |
As of December 31, 2014 and 2013, we have recorded other deferred compensation relating to executive compensation payable to certain former executives of past acquisitions. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 13 – SEGMENT INFORMATION |
We operate in the Telecom Segment and have no other significant business segments. The Telecom Segment consists of voice, data and video communication services delivered to the customer over our local communications network. No single customer accounted for a material portion of our consolidated revenues in any of the last two years. | |
The Telecom Segment operates the following ILECs and CLECs and has investment ownership interests as follows: | |
Telecom Segment | |
● ILECs: | |
▪ New Ulm Telecom, Inc., the parent company; | |
▪ Hutchinson Telephone Company, a wholly-owned subsidiary of NU Telecom; | |
▪ Peoples Telephone Company, a wholly-owned subsidiary of NU Telecom; | |
▪ Sleepy Eye Telephone Company, a wholly-owned subsidiary of NU Telecom; | |
▪ Western Telephone Company, a wholly-owned subsidiary of NU Telecom; | |
● CLECs: | |
▪ NU Telecom, located in Redwood Falls, Minnesota; | |
▪ Hutchinson Telecommunications, Inc., a wholly-owned subsidiary of Hutchinson Telephone Company, located in Litchfield, Minnesota; | |
● Our investments and interests in the following entities include some management responsibilities: | |
▪ FiberComm, LC – 19.99% subsidiary equity ownership interest. FiberComm, LC is located in Sioux City, Iowa; | |
▪ Broadband Visions, LLC – 24.30% subsidiary equity ownership interest. Broadband Visions, LLC provides video headend and Internet services; | |
▪ Independent Emergency Services, LLC – 14.29% subsidiary equity ownership interest. Independent Emergency Services, LLC is a provider of E-911 services to the State of Minnesota as well as a number of counties located in Minnesota; and | |
▪ SM Broadband, LLC – 12.50% subsidiary equity ownership interest. SM Broadband, LLC provides network connectivity for regional businesses. |
TRANSACTIONS_WITH_EQUITY_METHO
TRANSACTIONS WITH EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 14 – Transactions with equity method investments |
We receive and provide services to various partnerships and limited liability companies where we are an investor. Services received include digital video, special access and communications circuits. Services provided include Board of Director meeting attendance, labor, Internet help desk services and management services. Cost of services we receive from affiliated parties may not be the same as the costs of such services had they been obtained from different parties. | |
Total revenues from transactions with affiliates were $1,003,181 and $799,166 for 2014 and 2013. Total expenses from transactions with affiliates were $460,047 and $428,825 for 2014 and 2013. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 15 -- SUBSEQUENT EVENTS |
NU Telecom’s Board of Directors has declared a regular quarterly dividend on our common stock of $0.0850 per share, payable on March 16, 2015 to stockholders of record at the close of business on March 6, 2015. | |
We have evaluated and disclosed subsequent events through the filing date of this Annual Report on Form 10-K. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Description Of Business Policy [Text Block] | Description of Business | |||||
NU Telecom is a diversified communications company headquartered in New Ulm, Minnesota with more than 109 years of experience in the local telephone exchange and telecommunications business. Our principal line of business is the operation of five local telephone companies and the operation of two CLEC telephone companies. Our ILEC businesses consist of connecting customers to our state-of-the-art, fiber-rich communications network, providing managed services, switched service and dedicated private lines, connecting customers to long distance service providers and providing many other services associated with ILECs. Our ILECs also provide IPTV, digital TV and CATV, Internet access services, including high-speed broadband access, and long distance service. We also install and maintain communications systems to the areas in and around our ILEC service territories in southern Minnesota and northern Iowa. | ||||||
Basis Of Presentation and Principles Of Consolidation Policy [Text Block] | Basis of Presentation and Principles of Consolidation | |||||
Our accounting policies conform with GAAP and, where applicable, to the accounting principles as prescribed by federal and state telephone utility regulatory authorities. We presently give accounting recognition to the actions of regulators where appropriate in preparing general purpose financial statements for most public utilities. In general, the type of regulation covered by this statement permits rates (prices) for some services to be set at levels intended to recover the estimated costs of providing regulated services or products, including the cost of capital (interest costs and a provision for earnings on stockholders’ investments). | ||||||
Our consolidated financial statements report the financial condition and results of operations for NU Telecom and its subsidiaries in one business segment: the Telecom Segment. Inter-company transactions have been eliminated from the consolidated financial statements. | ||||||
Classification Of Costs And Expenses Policy [Text Block] | Classification of Costs and Expenses | |||||
Cost of services includes all costs related to delivery of communication services and products. These operating costs include all costs of performing services and providing related products including engineering, network monitoring and transportation costs. | ||||||
Selling, general and administrative expenses include direct and indirect selling expenses, customer service, billing and collections, advertising and all other general and administrative costs associated with the operations of the business. | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | |||||
Preparing consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities. The estimates and assumption used in the accompanying consolidated financial statements are based on our management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions. | ||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | |||||
We recognize revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery of the product has occurred or a service has been provided, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. | ||||||
Revenues are earned from our customers primarily through the connection to our networks, digital and commercial TV programming, Internet services (high-speed broadband), and hosted and managed services. Revenues for these services are billed based on set rates for monthly service or based on the amount of time the customer is utilizing our facilities. The revenue for these services is recognized when the service is rendered. | ||||||
Revenues earned from IXCs accessing our network are based on the utilization of our network by these carriers as measured by minutes of use on the network or special access to the network by the individual carriers. Revenues are billed at tariffed access rates for both interstate and intrastate calls. Revenues for these services are recognized based on the period the access is provided. | ||||||
Interstate access rates are established by a nationwide pooling of companies known as NECA. The FCC established NECA in 1983 to develop and administer interstate access service rates, terms and conditions. Revenues are pooled and redistributed on the basis of a company's actual or average costs. New Ulm’s and SETC’s settlements from the pools are based on its actual costs to provide service, while the settlements for NU Telecom subsidiaries – WTC, PTC and HTC are based on nationwide average schedules. Access revenues for New Ulm and SETC include an estimate of a cost study each year that is trued-up subsequent to the end of any given year. Our management believes the estimates included in our preliminary cost study are reasonable. We cannot predict the future impact that industry or regulatory changes will have on interstate access revenues. | ||||||
Intrastate access rates are filed with state regulatory commissions in Minnesota and Iowa. | ||||||
We derive revenues from the sale, installation and servicing of communication systems. In accordance with GAAP, these deliverables are accounted for separately. We recognize revenue from customer contracts for sales and installations using the completed-contract method, which recognizes income when the contract is substantially complete. We recognize rental revenues over the rental period. | ||||||
Receivables, Policy [Policy Text Block] | Receivables | |||||
As of December 31, 2014 and 2013, our consolidated receivables totaled $1,442,477 and $1,458,627, net of the allowance for doubtful accounts. We believe our receivables as of December 31, 2014 and 2013 are recorded at their fair value. As there may be exposure or risk with receivables, we routinely monitor our receivables and adjust the allowance for doubtful accounts when events occur that may potentially affect the collection of our receivables. | ||||||
Allowance For Doubtful Accounts Policy [Text Block] | Allowance for Doubtful Accounts | |||||
We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. In making the determination of the appropriate allowance for doubtful accounts, we consider specific accounts, historical write-offs, changes in customer relationships, credit worthiness and concentrations of credit risk. Specific accounts receivable are written off once a determination is made that the account is uncollectible. Additional allowances may be required if the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments. | ||||||
The activity in our allowance for doubtful accounts includes the following: | ||||||
Year Ended December 31 | ||||||
2014 | 2013 | |||||
Balance at beginning of year | $ | 120,000 | $ | 175,705 | ||
Additions charged to costs and expenses | 226,439 | 185,803 | ||||
Accounts written off | -285,939 | -241,508 | ||||
Balance at end of year | $ | 60,500 | $ | 120,000 | ||
Inventory, Policy [Policy Text Block] | Inventories | |||||
Inventory includes parts, materials and supplies stored in our warehouses to support basic levels of service and maintenance as well as scheduled capital projects and equipment awaiting configuration for customers. Inventory also includes (i) parts and equipment shipped directly from vendors to customer locations while in transit and (ii) parts and equipment returned from customers that are being returned to vendors for credit. Our inventory value as of December 31, 2014 and 2013 was $2,227,925 and $2,535,046. | ||||||
We value inventory using the lower of cost or market method. Similar to our allowance for doubtful accounts, we make estimates related to the valuation of inventory. As of December 31, 2014 and 2013, we had no inventory reserve. We adjust our inventory carrying value for estimated obsolescence or unmarketable inventory to the estimated market value based upon assumptions about future demand and market conditions. As market and other conditions change, we may establish additional inventory reserves at a time when the facts that give rise to a lower value are warranted. We use the first-in, first-out method of inventory costing for our non-retail inventory. We use the average cost method of inventory costing for our retail inventory. | ||||||
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements | |||||
We have adopted the rules prescribed under GAAP for our financial assets and liabilities. GAAP includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: | ||||||
Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||
Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market–corroborated inputs that are derived principally from or corroborated by observable market data. | ||||||
Level 3: Inputs are derived from valuation techniques where one or more significant inputs or value drivers are unobservable. | ||||||
We have used financial derivative instruments to manage our overall cash flow exposure to fluctuations in interest rates. We accounted for derivative instruments in accordance with GAAP that requires derivative instruments to be recorded on the balance sheet at fair value. Changes in fair value of derivative instruments must be recognized in earnings unless specific hedge accounting criteria are met, in which case, the gains and losses are included in other comprehensive income rather than in earnings. | ||||||
We previously had entered into interest rate swaps with our lender CoBank to manage our cash flow exposure to fluctuations in interest rates. These instruments were designated as cash flow hedges and were effective at mitigating the risk of fluctuations on interest rates in the market place. Any gains or losses related to changes in the fair value of these derivatives were accounted for as a component of accumulated other comprehensive income (loss) for as long as the hedge remained effective. | ||||||
We previously had entered into interest rate swaps with our lender CoBank to manage our cash flow exposure to fluctuations in interest rates. These instruments were designated as cash flow hedges and were effective at mitigating the risk of fluctuations on interest rates in the market place. Any gains or losses related to changes in the fair value of these derivatives were accounted for as a component of accumulated other comprehensive income (loss) for as long as the hedge remained effective. | ||||||
The fair value of our interest rate swap agreements is discussed in Note 5 – “Interest Rate Swaps” to the Consolidated Financial Statements of this Annual Report on Form 10-K. The fair value of our swap agreements were determined based on Level 2 inputs. | ||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment | |||||
We record impairment losses on long‑lived assets used in operations when events and circumstances indicate the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. In assessing the recoverability of long-lived assets, we compare the carrying value to the undiscounted future cash flows the assets are expected to generate. If the total of the undiscounted future cash flows is less than the carrying amount of the assets, we would write down those assets based on the excess of the carrying amount over the fair value of the assets. Fair value is generally determined by calculating the discounted future cash flows expected from those assets. Changes in these estimates could have a material adverse effect on the assessment of long-lived assets, thereby requiring a write-down of the assets. Write-downs of long-lived assets are recorded as impairment charges and are a component of operating expenses. We have reviewed our long-lived assets and concluded that no impairment charge on our long-lived assets is necessary. | ||||||
We use the group life method (mass asset accounting) to depreciate the assets of our telephone companies. Telephone plant acquired in a given year is grouped into similar categories and depreciated over the remaining estimated useful life of the group. When an asset is retired, both the asset and the accumulated depreciation associated with that asset are removed from the books. Due to rapid changes in technology, selecting the estimated economic life of telecommunications plant and equipment requires a significant amount of judgment. We periodically review data on expected utilization of new equipment, asset retirement activity and net salvage values to determine adjustments to our depreciation rates. We have not made any significant changes to the lives of these assets in the two year period ended December 31, 2014. | ||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets | |||||
We amortize our definite-lived intangible assets over their estimated useful lives. Customer lists are amortized over fourteen to fifteen years, regulatory rights are amortized over fifteen years and non-competition agreements are amortized over five years. Intangible assets with finite lives are amortized over their respective estimated useful lives. In accordance with GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but tested for impairment at least annually. See Note 3 – “Goodwill and Intangibles” to the Consolidated Financial Statements of this Annual Report on Form 10-K for a more detailed discussion of the intangible assets and goodwill. Our goodwill balance was $39,805,349 as of December 31, 2014 and 2013. In the fourth quarter of 2014 and 2013 we completed our annual impairment tests for existing acquired goodwill. This testing resulted in no impairment charges to goodwill at December 31, 2014 and 2013. | ||||||
Investments And Other Assets Policy [Text Block] | Investments and Other Assets | |||||
We are a co-investor with other rural telephone companies in several partnerships and limited liability companies. We use the equity method of accounting for these investments that reflects original cost and recognition of our share of the net income or losses from the respective operations. | ||||||
Long-term investments in other companies that are not intended for resale or are not readily marketable are valued at the lower of cost or net realizable value. | ||||||
Other Financial Instruments Policy [Text Block] | Other Financial Instruments | |||||
Other Investments – It is difficult to estimate a fair value for equity investments in companies carried on the equity or cost basis due to a lack of quoted market prices. We conducted an evaluation of our investments in all of our companies in connection with the preparation of our audited financial statements at December 31, 2014. We believe the carrying value of our investments is not impaired. | ||||||
Debt– We estimate the fair value of our long-term debt based on the discounted future cash flows we expect to pay using current rates of borrowing rates for similar types of debt. Fair value of the debt approximates carrying value. | ||||||
Other Financial Instruments– Our financial instruments also include cash equivalents, trade accounts receivable and accounts payable where the current carrying amounts approximate fair market value. | ||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Expense | |||||
Advertising is expensed as incurred. Advertising expense charged to operations was $191,259 and $193,769 in 2014 and 2013. | ||||||
Interest During Construction Policy [Text Block] | Interest During Construction | |||||
We include an average cost of debt for the construction of plant in our communications plant accounts. | ||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | |||||
We account for income taxes in accordance with GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. Accordingly, deferred tax assets and liabilities arise from the difference between the tax basis of an asset or liability and its reported amount in the financial statements and operating and tax credit carryforwards. Deferred tax assets and liabilities are determined using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. We recognize interest and penalties related to income tax matters as income tax expense. Income tax expense or benefit is the tax payable or refundable, respectively, for the period plus or minus the change in deferred tax assets and liabilities during the period. | ||||||
GAAP requires us to recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. See Note 6 – “Income Taxes” to the Consolidated Financial Statements of this Annual Report on Form 10-K for additional information regarding income taxes. | ||||||
Collection Of Taxes From Customers Policy [Text Block] | Collection of Taxes from Customers | |||||
Sales, excise and other taxes are imposed on most of our sales to nonexempt customers. We collect these taxes from our customers and remit the entire amounts to governmental authorities. Our accounting policies dictate that we exclude these taxes collected and remitted from our revenues and expenses | ||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Credit Risk | |||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments and receivables. We deposit some of our cash investments in high credit quality financial institutions accounts which, at times, may exceed federally insured limits. We have not experienced any losses in these accounts and do not believe we are exposed to any significant credit risk. Concentrations of credit risk with respect to trade receivables are limited due to our large number of customers. | ||||||
Earnings And Dividends Per Share Policy [Text Block] | Earnings And Dividends Per Share | |||||
Basic earnings per share (EPS) are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Our basic and diluted EPS are based on our weighted average number of shares outstanding of 5,097,401 and 5,111,012 for the periods ended December 31, 2014 and 2013. | ||||||
Dividends per share have been declared quarterly by the NU Telecom Board of Directors. | ||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Developments | |||||
In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, “Revenue from Contracts with Customers” and created a new topic in the FASB Accounting Standards Codification, Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing United States GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our consolidated financial statements and related disclosures. | ||||||
In the first quarter of 2013, the FASB issued ASU 2013-02 to improve the disclosure of reclassifications out of accumulated other comprehensive income. The Update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Also, an entity is required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income (only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period) either on the face of the statement where net income is presented or in the notes. The adoption of this guidance did not have a material impact on our disclosures or consolidated financial statements. | ||||||
We have reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounting Policies [Abstract] | ||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Year Ended December 31 | |||||
2014 | 2013 | |||||
Balance at beginning of year | $ | 120,000 | $ | 175,705 | ||
Additions charged to costs and expenses | 226,439 | 185,803 | ||||
Accounts written off | -285,939 | -241,508 | ||||
Balance at end of year | $ | 60,500 | $ | 120,000 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Property, Plant and Equipment [Abstract] | ||||||
Property, Plant and Equipment [Table Text Block] | 2014 | 2013 | ||||
Telecommunications Plant: | ||||||
Land | $ | 494,082 | $ | 494,082 | ||
Buildings | 8,947,763 | 8,947,763 | ||||
Other Support Assets | 11,114,886 | 10,767,432 | ||||
Central Office and Circuit Equipment | 44,446,845 | 42,654,535 | ||||
Cable and Wire Facilities | 49,012,778 | 45,222,512 | ||||
Other Plant and Equipment | 404,883 | 404,883 | ||||
Plant Under Construction | 679,036 | 186,631 | ||||
Telecommunications Plant | 115,100,273 | 108,677,838 | ||||
Other Property | 13,713,496 | 11,512,589 | ||||
Video Plant | 9,566,806 | 9,444,324 | ||||
Total Property, Plant and Equipment | $ | 138,380,575 | $ | 129,634,751 |
GOODWILL_AND_INTANGIBLES_Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 31-Dec-14 | 31-Dec-13 | ||||||||||||
Gross | Gross | |||||||||||||
Useful | Carrying | Accumulated | Carrying | Accumulated | ||||||||||
Lives | Amount | Amortization | Amount | Amortization | ||||||||||
Definite-Lived Intangible Assets | ||||||||||||||
Customers Relationships | 14-15 yrs | $ | 29,278,445 | $ | 11,087,066 | $ | 29,278,445 | $ | 8,996,498 | |||||
Regulatory Rights | 15 yrs | 4,000,000 | 1,866,651 | 4,000,000 | 1,599,987 | |||||||||
Non-Competition Agreement | 5 yrs | - | - | 800,000 | 800,000 | |||||||||
Trade Name | 3-5 yrs | 570,000 | 228,000 | 1,370,000 | 914,000 | |||||||||
Indefinitely-Lived Intangible Assets | ||||||||||||||
Video Franchise | 3,000,000 | - | 3,000,000 | - | ||||||||||
Total | $ | 36,848,445 | $ | 13,181,717 | $ | 38,448,445 | $ | 12,310,485 | ||||||
Net Identified Intangible Assets | $ | 23,666,728 | $ | 26,137,960 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2015 | $ | 2,471,233 | |||||||||||
2016 | $ | 2,469,256 | ||||||||||||
2017 | $ | 2,469,083 | ||||||||||||
2018 | $ | 2,355,083 | ||||||||||||
2019 | $ | 2,355,083 |
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Disclosure Text Block [Abstract] | ||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt is as follows: | 2014 | 2013 | |||
Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $675,000 (beginning on March 31, 2015), plus a notional variable rate of interest through December 31, 2021. | $ | 35,000,000 | $ | - | ||
Secured seven-year revolving credit facility of up to $9,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2021. | 4,644,471 | - | ||||
Secured seven-year reducing credit facility to CoBank, ACB, in quarterly installments of $250,000, plus a notional variable rate of interest through December 31, 2014. | - | 10,500,000 | ||||
Secured seven-year revolving credit facility of up to $10,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2014. | - | 6,434,730 | ||||
Secured two-year reducing revolving credit facility to CoBank, ACB in quarterly installments of $225,000 (beginning on June 30, 2013), plus a notional variable rate of interest through December 31, 2014. | - | 3,825,000 | ||||
Secured seven-year reducing revolving credit facility to CoBank, ACB in quarterly installments of $609,500 (beginning in 2010), plus a notional variable rate of interest through December 31, 2014. | - | 19,948,000 | ||||
Secured seven-year revolving credit facility of up to $2,000,000 to CoBank, ACB, plus a notional variable rate of interest through December 31, 2014. | - | - | ||||
39,644,471 | 40,707,730 | |||||
Less: Amount due within one year | 2,700,000 | 40,707,730 | ||||
Total Long Term Debt | $ | 36,944,471 | $ | - | ||
Schedule of Maturities of Long-term Debt [Table Text Block] | 2015 | $ | 2,700,000 | |||
2016 | $ | 2,700,000 | ||||
2017 | $ | 2,700,000 | ||||
2018 | $ | 2,700,000 | ||||
2019 | $ | 2,700,000 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Income Tax Disclosure [Abstract] | ||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2014 | 2013 | ||||
Taxes currently payable | ||||||
Federal | $ | 1,591,326 | $ | 2,114,852 | ||
State | 588,146 | 589,491 | ||||
Deferred Income Taxes | -260,007 | -723,904 | ||||
Total Income Tax Expense (Benefit) | $ | 1,919,465 | $ | 1,980,439 | ||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2014 | 2013 | ||||
Balance Beginning of Year | $ | 259,739 | $ | 143,866 | ||
Net Increases | ||||||
Prior Period Tax Positions | 21,624 | 115,873 | ||||
Net Decreases | ||||||
Prior Period Tax Positions | - | - | ||||
Settlements | - | - | ||||
Balance at End of Year | $ | 281,363 | $ | 259,739 | ||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2014 | 2013 | ||||
Statutory Tax Rate | 35 | % | 35 | % | ||
Effect of: | ||||||
Surtax Exemption | -1 | -1 | ||||
State Income Taxes Net of Federal Tax Benefit | 6.97 | 6.74 | ||||
Uncertain Tax Positions | 0.3 | 0.27 | ||||
Permanent Differences and Other, Net | -0.12 | -0.05 | ||||
Effective tax rate | 41.15 | % | 40.96 | % | ||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2014 | 2013 | ||||
Current Deferred Tax (Assets) / Liabilities | ||||||
Accrued Expenses | $ | -687,725 | $ | -647,766 | ||
Deferred Compensation | -25,563 | -26,408 | ||||
Other | -72,317 | -86,902 | ||||
Total Current Deferred Tax (Asset) / Liabilities | -785,605 | -761,076 | ||||
Non-Current Deferred Tax (Asset) / Liabilities | ||||||
Fixed Assets | 10,338,127 | 9,633,907 | ||||
Intangible Assets | 8,297,427 | 9,278,601 | ||||
Deferred Compensation | -341,223 | -371,370 | ||||
Partnership Basis | 866,813 | 877,111 | ||||
Subtotal Deferred Tax (Assets) / Liabilities Long-Term | 19,161,144 | 19,418,249 | ||||
Unrecognized Tax Benefit | 281,363 | 259,739 | ||||
Total Deferred Tax (Assets) / Liabilities Long-Term | 19,442,507 | 19,677,988 | ||||
Net Deferred Tax Liability | $ | 18,656,902 | $ | 18,916,912 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Receivables, Net, Current | $1,442,477 | $1,458,627 |
Other Inventory, Gross | 2,227,925 | 2,535,046 |
Goodwill | 39,805,349 | 39,805,349 |
Advertising Expense | $191,259 | $193,769 |
Weighted Average Number of Shares Outstanding, Basic and Diluted (in Shares) | 5,097,401 | 5,111,012 |
Customer Lists [Member] | Minimum [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | |
Customer Lists [Member] | Maximum [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Regulatory Rights [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Noncompete Agreements [Member] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Allowance for doubtful accounts (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts [Abstract] | ||
Balance at beginning of year | $120,000 | $175,705 |
Additions charged to costs and expenses | 226,439 | 185,803 |
Accounts written off | -285,939 | -241,508 |
Balance at end of year | $60,500 | $120,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Depreciation | $7,080,088 | $6,684,461 |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 5.20% | 5.20% |
Other Property and Video Plant [Member] | Minimum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Other Property and Video Plant [Member] | Maximum [Member] | ||
PROPERTY, PLANT AND EQUIPMENT (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details) - Property, plant and equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Telecommunications Plant: | ||
Telecommunications Plant | $115,100,273 | $108,677,838 |
Other Property | 13,713,496 | 11,512,589 |
Video Plant | 9,566,806 | 9,444,324 |
Total Property, Plant and Equipment | 138,380,575 | 129,634,751 |
Land [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 494,082 | 494,082 |
Building [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 8,947,763 | 8,947,763 |
Other Support Assets [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 11,114,886 | 10,767,432 |
Office Equipment [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 44,446,845 | 42,654,535 |
Cable and Wire Facilities [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 49,012,778 | 45,222,512 |
Other Plant and Equipment [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | 404,883 | 404,883 |
Plant Under Construction [Member] | Telecommunication Plant [Member] | ||
Telecommunications Plant: | ||
Telecommunications Plant | $679,036 | $186,631 |
GOODWILL_AND_INTANGIBLES_Detai
GOODWILL AND INTANGIBLES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $39,805,349 | $39,805,349 |
Amortization of Intangible Assets | $2,471,232 | $2,471,233 |
GOODWILL_AND_INTANGIBLES_Detai1
GOODWILL AND INTANGIBLES (Details) - Components of Identified Intangible Assets (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Definite-Lived Intangible Assets | ||
Accumulated Amortization | $13,181,717 | $12,310,485 |
Indefinitely-Lived Intangible Assets | ||
Total | 36,848,445 | 38,448,445 |
Total | 13,181,717 | 12,310,485 |
Net Identified Intangible Assets | 23,666,728 | 26,137,960 |
Franchise Rights [Member] | ||
Indefinitely-Lived Intangible Assets | ||
Video Franchise | 3,000,000 | 3,000,000 |
Customer Relationships [Member] | Minimum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 14 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 15 years | |
Customer Relationships [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 29,278,445 | 29,278,445 |
Accumulated Amortization | 11,087,066 | 8,996,498 |
Indefinitely-Lived Intangible Assets | ||
Total | 11,087,066 | 8,996,498 |
Regulatory Rights [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 15 years | |
Gross Carrying Amount | 4,000,000 | 4,000,000 |
Accumulated Amortization | 1,866,651 | 1,599,987 |
Indefinitely-Lived Intangible Assets | ||
Total | 1,866,651 | 1,599,987 |
Noncompete Agreements [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 5 years | |
Gross Carrying Amount | 800,000 | |
Accumulated Amortization | 800,000 | |
Indefinitely-Lived Intangible Assets | ||
Total | 800,000 | |
Trade Names [Member] | Minimum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 3 years | |
Trade Names [Member] | Maximum [Member] | ||
Definite-Lived Intangible Assets | ||
Useful Lives | 5 years | |
Trade Names [Member] | ||
Definite-Lived Intangible Assets | ||
Gross Carrying Amount | 570,000 | 1,370,000 |
Accumulated Amortization | 228,000 | 914,000 |
Indefinitely-Lived Intangible Assets | ||
Total | $228,000 | $914,000 |
GOODWILL_AND_INTANGIBLES_Detai2
GOODWILL AND INTANGIBLES (Details) - Summary Of Future Amortization Expense (USD $) | Dec. 31, 2014 |
Summary Of Future Amortization Expense [Abstract] | |
2015 | $2,471,233 |
2016 | 2,469,256 |
2017 | 2,469,083 |
2018 | 2,355,083 |
2019 | $2,355,083 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
MLA RX0583-T2A [Member] | Secured Debt [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Debt Instrument, Frequency of Periodic Payment | monthly |
Debt Instrument, Face Amount | $9,000,000 |
Long-term Line of Credit | 4,644,471 |
Debt Instrument, Maturity Date | 31-Dec-21 |
MLA RX0583-T3A [Member] | Secured Debt [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Debt Instrument, Frequency of Periodic Payment | monthly |
Debt Instrument, Face Amount | 35,000,000 |
Debt Instrument, Periodic Payment, Principal | 675,000 |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 16,100,000 |
Amended And Restated MLA With CoBank [Member] | Secured Debt [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 35,000,000 |
Amended And Restated MLA With CoBank [Member] | Revolving Credit Facility [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 9,000,000 |
Line of Credit Facility, Increase, Maximum Borrowing Capacity | 6,000,000 |
Amended And Restated MLA With CoBank [Member] | Additional Secured Debt [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | 6,000,000 |
Secured Credit Facility [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Debt Instrument, Covenant Compliance | we were in compliance with all the stipulated financial ratios in our loan agreements as of December 31, 2013. |
Line of Credit Facility, Maximum Borrowing Capacity | 44,000,000 |
Debt Instrument, Covenant Description | Our new loan agreements include restrictions on our ability to pay cash dividends to our stockholders. However, we are allowed to pay dividends (a) (i) in an amount up to $2,100,000 in any year if our “Total Leverage Ratio,” that is, the ratio of our “Indebtedness” to “EBITDA” – as defined in the loan documents) is greater than 2.50 to 1.00, and (ii) in any amount if our Total Leverage Ratio is less than 2.50 to 1.00, and (b) in either case, if we are not in default or potential default under the loan agreements. |
Debt Instrument Threshold Amount Dividends | 2,100,000 |
Debt, Weighted Average Interest Rate | 3.42% |
Secured Debt [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Long-term Line of Credit | 39,600,000 |
Revolving Credit Facility [Member] | |
LONG-TERM DEBT (Details) [Line Items] | |
Line of Credit Facility, Remaining Borrowing Capacity | $4,400,000 |
LONGTERM_DEBT_Details_Longterm
LONG-TERM DEBT (Details) - Long-term debt (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long Term Debt | $39,644,471 | $40,707,730 |
Less: Amount due within one year | 2,700,000 | 40,707,730 |
Total Long Term Debt | 36,944,471 | |
Seven-Year, Quarterly Installments $675,000 Through December 31, 2021 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 35,000,000 | |
Seven-Year, Revolving Credit Facility Of Up To $9,000,000 Through December 31, 2021 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 4,644,471 | |
Seven-Year, Quarterly Installments $250,000 Through December 31, 2014 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 10,500,000 | |
Seven-Year, Revolving Credit Facility Of Up To $10,000,000 Through December 31, 2014 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 6,434,730 | |
Two-Year, Quarterly Installments $225,500 Through December 31, 2014 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 3,825,000 | |
Seven-Year, Revolving Credit Facility Of Quarterly Installments $609,500 Through December 31, 2014 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt | 19,948,000 | |
Seven-Year, Revolving Credit Facility Of Up To $2,000,000 Through December 31, 2014 [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long Term Debt |
LONGTERM_DEBT_Details_Longterm1
LONG-TERM DEBT (Details) - Long-term debt (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Seven-Year, Quarterly Installments $675,000 Through December 31, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Quarterly Installments | $675,000 | $675,000 |
Seven-Year, Revolving Credit Facility Of Up To $9,000,000 Through December 31, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Revolving Credit Facility | 9,000,000 | 9,000,000 |
Seven-Year, Quarterly Installments $250,000 Through December 31, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Quarterly Installments | 250,000 | 250,000 |
Seven-Year, Revolving Credit Facility Of Up To $10,000,000 Through December 31, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Revolving Credit Facility | 10,000,000 | 10,000,000 |
Two-Year, Quarterly Installments $225,500 Through December 31, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 2 years | 2 years |
Quarterly Installments | 225,000 | 225,000 |
Seven-Year, Revolving Credit Facility Of Quarterly Installments $609,500 Through December 31, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Quarterly Installments | 609,500 | 609,500 |
Seven-Year, Revolving Credit Facility Of Up To $2,000,000 Through December 31, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period | 7 years | 7 years |
Revolving Credit Facility | $2,000,000 | $2,000,000 |
LONGTERM_DEBT_Details_Required
LONG-TERM DEBT (Details) - Required principal payments (USD $) | Dec. 31, 2014 |
Required principal payments [Abstract] | |
2015 | $2,700,000 |
2016 | 2,700,000 |
2017 | 2,700,000 |
2018 | 2,700,000 |
2019 | $2,700,000 |
INTEREST_RATE_SWAPS_Details
INTEREST RATE SWAPS (Details) (USD $) | Jun. 23, 2008 | Mar. 19, 2008 | Mar. 31, 2013 | Jun. 30, 2013 |
Interest Rate Swap [Member] | Variable Rate Debt Through March Two Thousand Eleven [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Long-term Debt, Gross | $6,000,000 | |||
Interest Rate Swap [Member] | Variable Rate Debt Through March Two Thousand Thirteen [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Long-term Debt, Gross | 33,000,000 | |||
Interest Rate Swap [Member] | Variable Rate Debt Through June Two Thousand Eleven [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Long-term Debt, Gross | 3,000,000 | |||
Interest Rate Swap [Member] | Variable Rate Debt Through June Two Thousand Thirteen [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Long-term Debt, Gross | 3,000,000 | |||
Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Aggregate Indebtedness | 6,000,000 | 39,000,000 | ||
Maturity of Interest Rate Swap [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Notional Amount | 33,000,000 | |||
Swaps Matured On Loan R X0583 T1 [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Notional Amount | 11,250,000 | |||
Swaps Matured On Loan R X0584 T1 [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Notional Amount | 21,750,000 | |||
Swaps Matured On Loan R X0583 T2 [Member] | ||||
INTEREST RATE SWAPS (Details) [Line Items] | ||||
Derivative Liability, Notional Amount | $3,000,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Examination Tax Positions Recognition Likelihood Threshold Percentage | 50.00% | ||
Unrecognized Tax Benefits | $281,363 | $259,739 | $143,866 |
Federal Income Tax Expense (Benefit), Continuing Operations | 95,663 | 88,311 | |
Income Tax Examination, Interest Accrued | $89,910 | $68,286 |
INCOME_TAXES_Details_Income_ta
INCOME TAXES (Details) - Income taxes recorded (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Taxes currently payable | ||
Federal | $1,591,326 | $2,114,852 |
State | 588,146 | 589,491 |
Deferred Income Taxes | -260,007 | -723,904 |
Total Income Tax Expense (Benefit) | $1,919,465 | $1,980,439 |
INCOME_TAXES_Details_A_reconci
INCOME TAXES (Details) - A reconciliation of the beginning and ending amount of unrecognized tax benefits (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
A reconciliation of the beginning and ending amount of unrecognized tax benefits [Abstract] | ||
Balance Beginning of Year | $259,739 | $143,866 |
Net Increases | ||
Prior Period Tax Positions | 21,624 | 115,873 |
Net Decreases | ||
Prior Period Tax Positions | ||
Settlements | ||
Balance at End of Year | $281,363 | $259,739 |
INCOME_TAXES_Details_The_diffe
INCOME TAXES (Details) - The differences between the statutory federal tax rate and the effective tax rate | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
The differences between the statutory federal tax rate and the effective tax rate [Abstract] | ||
Statutory Tax Rate | 35.00% | 35.00% |
Effect of: | ||
Surtax Exemption | -1.00% | -1.00% |
State Income Taxes Net of Federal Tax Benefit | 6.97% | 6.74% |
Uncertain Tax Positions | 0.30% | 0.27% |
Permanent Differences and Other, Net | -0.12% | -0.05% |
Effective tax rate | 41.15% | 40.96% |
INCOME_TAXES_Details_Deferred_
INCOME TAXES (Details) - Deferred income taxes and unrecognized tax benefits (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Deferred Tax (Assets) / Liabilities | |||
Accrued Expenses | ($687,725) | ($647,766) | |
Deferred Compensation | -25,563 | -26,408 | |
Other | -72,317 | -86,902 | |
Total Current Deferred Tax (Asset) / Liabilities | -785,605 | -761,076 | |
Non-Current Deferred Tax (Asset) / Liabilities | |||
Fixed Assets | 10,338,127 | 9,633,907 | |
Intangible Assets | 8,297,427 | 9,278,601 | |
Deferred Compensation | -341,223 | -371,370 | |
Partnership Basis | 866,813 | 877,111 | |
Subtotal Deferred Tax (Assets) / Liabilities Long-Term | 19,161,144 | 19,418,249 | |
Unrecognized Tax Benefit | 281,363 | 259,739 | 143,866 |
Total Deferred Tax (Assets) / Liabilities Long-Term | 19,442,507 | 19,677,988 | |
Net Deferred Tax Liability | $18,656,902 | $18,916,912 |
RETIREMENT_PLAN_Details
RETIREMENT PLAN (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $469,306 | $449,890 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (Scenario, Forecast [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Scenario, Forecast [Member] | |
COMMITMENTS AND CONTINGENCIES (Details) [Line Items] | |
Payments to Acquire Productive Assets | $6,600,000 |
NONCASH_INVESTING_ACTIVITIES_D
NONCASH INVESTING ACTIVITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Noncash Investing Activities [Abstract] | ||
Contribution of Property | $438,744 | $254,245 |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | Dec. 31, 2014 |
Guarantees [Abstract] | |
Guaranty Liabilities | $297,475 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) | Dec. 31, 2014 |
Fiber Comm LC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 19.99% |
Broadband Visions LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 24.30% |
Independent Emergency Services LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 14.29% |
SM Broadband, LLC [Member] | |
SEGMENT INFORMATION (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 12.50% |
TRANSACTIONS_WITH_EQUITY_METHO1
TRANSACTIONS WITH EQUITY METHOD INVESTMENTS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ||
Revenue from Related Parties | $1,003,181 | $799,166 |
Related Party Transaction, Expenses from Transactions with Related Party | $460,047 | $428,825 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent Event [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Member] | |
SUBSEQUENT EVENTS (Details) [Line Items] | |
Dividends Payable, Amount Per Share | $0.09 |
Dividends Payable, Date to be Paid | 16-Mar-15 |
Dividends Payable, Date of Record | 6-Mar-15 |