SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED MARCH 31, 1995 COMMISSION FILE NUMBER 0-8621
THE WOODBURY TELEPHONE COMPANY
(Exact name of registrant as specified in its charter)
CONNECTICUT 06-0594990
(State or other jurisdiction of (IRS Employer Identi-
incorporation or organization) fication Number)
299 MAIN STREET SOUTH, WOODBURY, CONNECTICUT 06798
(Address of principal, executive offices)
(Zip Code)
Registrant's telephone number, including area code 203-263-2121
NOT APPLICABLE
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ______
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT APRIL 30, 1995
Common Stock, par value 769,107
$2.50 per share
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THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
INDEX
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets -
March 31, 1995 and December 31, 1994 3-4
Condensed Statements of Income -
Three months Ended March 31, 1995 and 1994 5
Condensed Statements of Cash Flows -
Three months Ended March 31, 1995 and 1994 6
Notes to Condensed Financial Statements 7-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
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THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
FOR QUARTER ENDED MARCH 31, 1995
PART I
FINANCIAL INFORMATION
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<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
MARCH 31, 1995 DECEMBER 31, 1994
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ASSETS
CURRENT ASSETS
Cash & cash equivalents $ 1,774,179 $ 1,942,924
Accounts receivable, less
allowance for losses of $60,000 1,544,350 1,765,155
Other receivables 1,084,877 1,260,337
Materials & supplies, at cost 468,327 430,899
Prepaid expenses 426,084 141,842
TOTAL CURRENT ASSETS 5,297,817 5,541,157
TELEPHONE PLANT & OTHER PROPERTY
In service 40,196,685 39,850,063
Less accumulated depreciation 19,516,133 18,955,421
20,680,552 20,894,642
Other property 76,717 76,717
20,757,269 20,971,359
OTHER ASSETS
1% Investment in Springwich
Cellular Limited Partnership 535,068 535,068
Deferred charges, less amort. 587,782 623,642
Regulatory asset 397,970 412,711
1,520,820 1,571,421
$27,575,906 $28,083,937
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<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED BALANCE SHEETS-CONTINUED
(Unaudited)
MARCH 31, 1995 DECEMBER 31, 1994
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,576,209 $ 1,984,024
Advance billings & customer deps. 281,491 280,918
Accrued interest 135,000 337,500
Income taxes 173,912 312,756
TOTAL CURRENT LIABILITIES 2,166,612 2,915,198
LONG-TERM DEBT 9,000,000 9,000,000
DEFERRED CREDITS
Income taxes 2,434,079 2,407,980
Investment tax credits 330,114 348,114
Regulatory liability 887,728 914,060
3,651,921 3,670,154
OTHER LONG-TERM LIABILITIES 387,051 359,617
SHAREHOLDERS' EQUITY
Common Stock, par value $2.50 per share,
authorized 1,250,000 shares, issued and
outstanding
769,107 shares 1,922,768 1,922,768
Additional paid-in capital 1,475,394 1,475,394
Retained earnings 8,972,160 8,740,806
12,370,322 12,138,968
See accompanying notes. $27,575,906 $28,083,937
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<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
1995 1994
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Operating revenues:
Local service $744,009 $695,707
Network service 2,171,852 2,090,048
Other 241,554 245,167
Provision for uncoll. (deduction) (3,529) (7,146)
3,153,886 3,023,776
Operating expenses:
Maintenance 696,515 630,260
Depreciation and amortization 684,596 631,027
General office 311,636 356,447
Commercial 332,820 332,334
Other 220,566 209,467
2,246,133 2,159,535
907,753 864,241
Other income:
Rental of tel. equip. & other, net 116,880 43,681
Interest 30,530 20,709
147,410 64,390
1,055,163 928,631
Interest expense 206,885 205,699
Income before income taxes 848,278 722,932
Income taxes 324,663 316,171
NET INCOME $523,615 $406,761
Per share of common stock:
Net income $0.68 $0.53
Dividends $0.38 $0.38
Average number of shares of
Common stock outstanding 769,107 769,107
See accompanying notes.
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<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED
1995 1994
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OPERATING ACTIVITIES:
Net income $523,615 $406,761
Depreciation 648,738 595,170
Other (614,189) (478,949)
NET CASH PROVIDED BY OPERATING
ACTIVITIES 558,164 522,982
INVESTING ACTIVITIES:
Purchases of tel. plant & other
property (434,648) (565,669)
NET CASH USED BY INVESTING
ACTIVITIES (434,648) (565,669)
FINANCING ACTIVITIES:
Dividends (292,261) (292,261)
NET CASH USED BY FINANCING
ACTIVITIES (292,261) (292,261)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (168,745) (334,948)
Cash and cash equivalents at beg.
of period 1,942,924 2,154,497
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $1,774,179 $1,819,549
See accompanying notes.
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THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1995
Note 1 - Basis of Presentation
The accompanying unaudited condensed financial statements of The
Woodbury Telephone Company (the Company) have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. All adjustments were
of a normal recurring nature.
Operating results for the three-month period ended March 31, 1995
are not necessarily indicative of the results that may be
expected for the year ending December 31, 1995. For further
information, refer to the financial statemnts and footnotes
thereto included in the Company'a annual report on Form 10-K for
the year ended December 31, 1994.
The condensed balance sheet at December 31, 1994 has been derived
from the audited financial statements at that date.
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<CAPTION>
THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
MARCH 31, 1995
Note 2 - Income Taxes
A reconciliation of the amount of income taxes based on the statutory
federal income tax rate to income taxes reflected in operations
follows:
Three-month period ended
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MARCH 31, 1995 MARCH 31, 1994
Amount based on statutory federal
income tax rate $288,415 $245,797
State income taxes, less fed. tax
effect 64,384 54,871
Investment tax credit amortization (18,000) (18,000)
Other (10,136) 33,503
Income taxes $324,663 $316,171
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THE WOODBURY TELEPHONE COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Operating revenues increased by $130,110 (4.3%) in the quarter ended
March 31, 1995 compared to 1994. Local service revenues increased by
$48,302, (6.9%), for the three months ended March 31, 1995 over the
comparable 1994 period. This increase resulted primarily from an increase
of 5.5% in the number of access lines served by the Company from March 31,
1994 to March 31, 1995. Network service revenues increased by $81,804
(3.9%) for the three-month period ended March 31 1995 compared to 1994.
Network service revenues for 1994 include a settlement of about $43,500
from Southern New England Telephone for certain jointly-provided circuits.
Total operating expenses increased by $86,598 (4.0%) in the quarter
ended March 31, 1995, compared to 1994. An increase in maintenance
expenses of $66,255 (10.5%) was partially offset by a decrease in general
office expenses of $44,811 (12.6%), in the first quarter of 1995 compared
to 1994, as certain personnel were reassigned from corporate operations to
plant operations. In addition, maintenance costs in the first quarter of
1995 included additional charges to update certain data processing
applications systems. Depreciation and amortization expenses increased by
$53,569 (8.5%) for the 1995 period compared to 1994, reflecting increased
investment in telephone plant in service. Other income increased by
$83,020 (128.9%) for the three-month period in 1995 over the comparable
1994 period, due primarily to increased charges for rental of equipment
effective in May 1994.
As of March 31, 1995 current assets exceeded current liabilities by
$3,131,205 reflecting an increase of $505,246 compared to December 31,
1994. Cash provided by operating activities for the three months ended
March 31, 1995 was $558,164, an increase of $35,182 over the comparable
period for 1994. The Company anticipates that available cash, including
that provided by current operating activities, will be sufficient to cover
capital expenditures and dividends for the remainder of 1995.
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THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
FOR QUARTER ENDED MARCH 31, 1995
PART II
OTHER INFORMATION
Exhibits and Reports on Form 8-K - None.
The Company did not file any reports on Form 8-K during the three months
ended March 31, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE WOODBURY TELEPHONE COMPANY
DATE ______________________ BY _______________________________
Donald E. Porter
President & Treasurer
DATE _______________________ BY _______________________________
William R. Platt
Controller
