Exhibit 20
SHAREHOLDERS CORRESPONDENCE
CHORUS COMMUNICATIONS GROUP, LTD.
September 15, 2000
Dear Shareholder,
I am departing from our normal quarterly report format to focus on what is
happening at this time and place in our Company's history. First our second
quarter results. Revenues are only off 1% for the six months ending June 30,
2000. However, net income is down 55.7% for the same period. The primary
reasons for this performance are not different from what I have stated in the
past. We are making significant investment in the future of Chorus and it
will take time before this investment provides a meaningful return.
I have discussed our investment in the Madison and Winona CLEC efforts
previously but I have not addressed Chorus Networks system sales and service
efforts. Although not readily apparent, investment is occurring in this area
which should contribute to future revenues. We have recognized the changing
communications needs of today's business community and are restructuring our
product offering to more closely reflect the increasing role data will play
in each and every business. This effort requires us to build the
infrastructure and create the knowledge base, both internally and externally,
before we can expect the investment to reflect a positive impact on our
financial performance.
The direction we are headed can certainly be challenged, but look around.
How many more companies are involved with the Internet today than were just a
few months ago? The market is dramatically changing and prospective
customers are taking time to develop their full communications strategies
before making any large investment decisions. They are looking for
companies that can provide an end-to-end service solution. We are preparing
to be that company.
The Board has taken these factors into consideration in determining the
dividend level for this quarter. Based on the information before them they
have decided to leave the dividend at its current level, $.16 per share for
the quarter.
As always, if there are any questions you would like me to respond to
directly, you can call me at (608) 826-4200.
Thank you for your interest.
/s/Dean W. Voeks
Dean W. Voeks
<PAGE>
<TABLE>
Condensed Consolidated Statement of Income
(Unaudited) Dollars in thousands, except per
share data
Six Months
Ended June 30,
2000 1999
<S> <C> <C>
REVENUE & SALES $ 22,959 $ 23,203
Costs of services & sales 8,562 8,927
Selling, general & administrative 8,464 7,467
Depreciation & amortization 3,340 2,900
OPERATING INCOME 2,593 3,909
Interest expense -1,125 -858
Other income, net 109 381
INCOME BEFORE INCOME TAXES 1,577 3,432
Income taxes 653 1,344
NET INCOME $ 924 $ 2,088
BASIC & DILUTED EARNINGS PER SHARE $ 0.17 $ 0.39
</TABLE>
<TABLE>
Condensed Consolidated Balance Sheets
(Unaudited) Dollars in thousands
June 30, Dec 31,
2000 1999
<S> <C> <C>
ASSETS
Current Assets $ 12,852 $ 15,511
Property, plant & equipment, net 51,444 47,221
Investments & other assets 10,262 10,223
TOTAL ASSETS $ 74,558 $ 72,955
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities $ 14,925 $ 11,785
Long-term debt 23,521 24,217
Deferred credits & other 5,631 5,634
Minority Interest 361 377
Shareholders' equity 30,120 30,942
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 74,558 $ 72,955
</TABLE>
