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 SEPTEMBER 30, 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
incorporation or organization) ID 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 OCTOBER 31, 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 -
September 30, 1995 and December 31, 1994 3-4
Condensed Statements of Income -
Nine Months Ended September 30, 1995 and 1994 5
Condensed Statements of Income -
Three Months Ended September 30,1995 and 1994 6
Condensed Statements of Cash Flows -
Nine Months Ended September 30, 1995 and 1994 7
Notes to Condensed Financial Statements 8-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
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THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
FOR QUARTER ENDED SEPTEMBER 30, 1995
PART I
FINANCIAL INFORMATION
<PAGE>
<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED BALANCE SHEETS
(Unaudited)
September 30, 1995 December 31, 1994
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash & cash equivalents $2,078,290 $ 1,942,924
Accounts receivable, less
allowance for losses of
$60,000 1,752,805 1,765,155
Other receivables 942,296 1,260,337
Materials & supplies, at cost 474,971 430,899
Prepaid expenses 187,356 141,842
Estimated income tax deposits
in excess of current provisoin 244,192 __________
TOTAL CURRENT ASSETS 5,679,910 5,541,157
TELEPHONE PLANT & OTHER PROPERTY
In service 41,259,476 39,850,063
Plant under construction 16,492
Less accumulated depreciation 20,573,636 18,955,421
Other property 76,717 76,717
20,779,049 20,971,359
OTHER ASSETS
1% Investment in Springwich
Cellular Limited Partnership 535,068 535,068
Deferred charges, less 516,068 623,642
accumulated amortization
Regulatory asset 368,486 412,711
1,419,622 1,571,421
$27,878,581 $28,083,937
</TABLE>
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<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED BALANCE SHEETS-CONTINUED
(Unaudited)
September 30, 1995 December 31, 1994
<S> <C> <C>
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,808,615 $ 1,984,024
Advance billings & customer 283,948 280,918
deposits
Accrued interest 135,000 337,500
Income taxes __________ 312,757
TOTAL CURRENT LIABILITIES 2,227,563 2,915,199
LONG-TERM DEBT 9,000,000 9,000,000
DEFERRED CREDITS
Income taxes 2,486,272 2,407,979
Investment tax credits 294,114 348,114
Regulatory liability 835,066 914,060
3,615,452 3,670,153
OTHER LONG-TERM LIABILITIES 441,921 359,617
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 9,195,483 8,740,806
12,593,645 12,138,968
See accompanying notes. $27,878,581 $28,083,937
</TABLE>
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<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30:
1995 1994
<S> <C> <C>
Operating revenues:
Local service $2,288,009 $2,146,104
Network service 6,399,422 6,311,309
Other 727,290 725,803
Provision for uncollectibles (49,122) (7,577)
(deduction)
9,365,599 9,175,639
Operating expenses:
Maintenance 2,394,649 2,289,028
Depreciation and 2,079,749 1,923,440
amortization
General office 682,688 704,275
Commercial 1,024,140 1,063,151
Other 677,006 628,228
6,848,232 6,608,122
2,517,367 2,567,517
Other income:
Rental of telephone 262,129 189,847
equipment & other, net
Interest 90,524 63,040
352,653 252,887
2,870,020 2,820,404
Interest expense 616,988 616,145
Income before income taxes 2,253,032 2,204,250
Income taxes 921,574 847,796
NET INCOME $1,331,458 $1,356,454
Per share of common stock:
Net income $1.73 $1.76
Dividends $1.14 $1.14
Average number of shares of
Common stock outstanding 769,107 769,107
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30:
1995 1994
<S> <C> <C>
Operating revenues:
Local service $ 781,453 $ 728,611
Network service 2,025,573 2,163,227
Other 261,408 231,071
Provision for (11,976) (1,333)
uncollectibles
(deduction)
3,056,458 3,121,576
Operating expenses:
Maintenance 988,069 948,336
Depreciation and 702,308 651,847
amortization
General office 58,574 56,581
Commercial 336,543 342,571
Other 237,287 199,846
2,322,781 2,199,181
733,677 922,395
Other income:
Rental of telephone 70,182 63,898
equipment & other, net
Interest 28,352 21,748
98,534 85,646
832,211 1,008,041
Interest expense 205,060 204,920
Income before income taxes 627,151 803,121
Income taxes 286,352 311,240
NET INCOME $340,799 $491,881
Per share of common stock:
Net income $0.44 $0.64
Dividends $.38 $.38
Average number of shares of
Common Stock outstanding 769,107 769,107
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED SEPT. 30, 1995
1995 1994
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $1,331,458 $1,356,454
Depreciation 1,972,176 1,815,868
Other, net (511,620) (473,731)
NET CASH PROVIDED BY 2,792,014 2,698,591
OPERATING ACTIVITIES
INVESTING ACTIVITIES:
Purchases of telephone (1,779,866) (2,013,259)
plant & other property
NET CASH USED BY INVESTING
ACTIVITIES (1,779,866) (2,013,259)
FINANCING ACTIVITIES:
Dividends (876,782) (876,781)
NET CASH USED BY FINANCING
ACTIVITIES (876,782) (876,781)
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 135,366 (191,449)
Cash and cash equivalents
at beginning of period 1,942,924 2,154,497
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $2,078,290 $1,963,048
See accompanying notes.
</TABLE>
<PAGE>
THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 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 PRINCIPLESFOR 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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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
STATEMENTS AND FOOTNOTES THERETO INCLUDED IN THE COMPANY'S 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.
<PAGE>
<TABLE>
<CAPTION>
THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 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:
NINE-MONTH PERIOD ENDED
<S> <C> <C>
September 30, 1995 September 30, 1994
Amount based on statutory
federal income tax rate $766,031 $749,445
State income taxes less
federal tax effect 171,005 167,303
Investment tax credit amortization (54,000) (54,000)
Other 38,538 (14,952)
Income taxes $921,574 $847,796
</TABLE>
<PAGE>
THE WOODBURY TELEPHONE COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OPERATING REVENUES INCREASED BY $189,960 (2.1%) FOR THE NINE-MONTH PERIOD
ENDED SEPTEMBER 30, 1995 OVER THE COMPARABLE 1994 PERIOD. LOCAL SERVICE
REVENUES INCREASED $141,905 (6.6%) IN 1995 COMPARED TO 1994. THIS INCREASE
WAS LARGELY DUE TO AN INCREASE IN THE NUMBER OF BUSINESS ACCESS LINES OF
262 (6.6%), AND IN THE NUMBER OF RESIDENCE ACCESS LINES OF 466 (3.4%).
NETWORK SERVICES REVENUES INCREASED BY $88,113 (1.4%) FOR THE 1995 PERIOD
COMPARED TO 1994. THE INCREASE IS LARGELY DUE TO AN INCREASE IN INTER-
STATE ACCESS CHARGE SETTLEMENTS OF $131,322 (3.8%) IN 1995 COMPARED TO
1994. NETWORK SERVICE REVENUES FOR 1994 INCLUDE A NON-RECURRING SETTLEMENT
OF ABOUT $43,500 FROM SOUTHERN NEW ENGLAND TELEPHONE, (SNET) FOR CERTAIN
JOINTLY-PROVIDED CIRCUITS. OPERATING REVENUES DECREASED BY $65,118 (2.1%)
FOR THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 1995, COMPARED TO 1994. AN
INCREASE IN LOCAL SERVICE REVENUES OF $52,842 (7.3%) WAS MITIGATED BY A
DECLINE IN NETWORK SERVICE REVENUES OF $137,654 (6.4%). THE DECLINE IN
NETWORK SERVICE REVENUES WAS DUE PRIMARILY TO A DECREASE IN INTER-STATE
ACCESS CHARGE SETTLEMENTS OF $108,292 (9.0%) FOR THE 1995 PERIOD COMPARED
TO 1994.
OPERATING EXPENSES INCREASED BY $240,110 (3.5%) FOR THE NINE-MONTH PERIOD
ENDED SEPTEMBER 30, 1995 OVER THE COMPARABLE 1994 PERIOD. THE INCREASE IS
LARGELY DUE TO AN INCREASE IN DEPRECIATION AND AMORTIZATION EXPENSE OF
$156,309 (8.1%), REFLECTING INCREASED INVESTMENT IN TELEPHONE PLANT IN
SERVICE. AN INCREASE IN MAINTENANCE EXPENSES OF $95,621 (4.2%) WAS
PARTIALLY OFFSET BY A DECREASE IN GENERAL OFFICE EXPENSES OF $21,587
(3.1%), AND IN COMMERCIAL EXPENSES OF $39,011 (3.7%) FOR THE 1995 PERIOD
COMPARED TO 1994, AS CERTAIN PERSONNEL WERE RE-ASSIGNED FROM CORPORATE
OPERATIONS TO PLANT OPERATIONS. OTHER EXPENSES INCLUDED AN INCREASE IN
CALL COMPLETION EXPENSE OF $90,984 (207.4%) IN 1995 COMPARED TO 1994. THE
INCREASE IS DUE PRIMARILY TO IMPLEMENTATION OF A REVISED AGREEMENT WHEREBY
SNET PROVIDES DIRECTORY ASSISTANCE FOR THE COMPANY. THE OLD AGREEMENT
EXPIRED JULY 26, 1994. UNDER A TARIFF WHICH TOOK EFFECT JULY 27, 1994,
COINCIDENT WITH THE NEW AGREEMENT WITH SNET, WOODBURY TELEPHONE BEGAN
BILLING ITS CUSTOMERS FOR CERTAIN DIRECTORY ASSISTANCE CHARGES. ADDITIONAL
NETWORK SERVICE REVENUES OF ABOUT $72,000 WERE RECORDED IN THE NINE MONTHS
ENDED SEPTEMBER 30, 1995, COMPARED TO ABOUT $18,000 IN THE COMPARABLE 1994
PERIOD.
FOR THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 1995, OPERATING EXPENSES
INCREASED $123,599 (5.6%), OVER THE COMPARABLE PERIOD IN 1994.
DEPRECIATION AND AMORTIZATION EXPENSE INCREASED $50,461 (7.7%) IN 1995
COMPARED TO 1994. ALSO, OTHER EXPENSES INCREASED BY $37,441 (18.7%) FOR
THE 1995 PERIOD COMPARED TO 1994. THIS INCREASE INCLUDES INCREASED
DIRECTORY ASSISTANCE CHARGES OF $43,166 (125.6%).
AS OF SEPTEMBER 30, 1995, CURRENT ASSETS EXCEEDED CURRENT LIABILITIES BY
$3,452,347, AN INCREASE OF $826,389 COMPARED TO DECEMBER 31, 1994. CASH
PROVIDED BY OPERATING ACTIVITIES FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1995 WAS $2,792,014, AN INCREASE OF $94,423 FROM 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 DECLARED DURING THE REMAINDER OF 1995.
<PAGE>
THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
FOR QUARTER ENDED SEPTEMBER 30, 1995
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits - None.
The Company did not file any reports on Form 8-K during
the three months ended September 30, 1995.
<PAGE>
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
November 13, 1995 Donald E. Porter
Date Donald E. Porter
President & Treasurer
November 13, 1995 William R. Platt
Date William R. Platt
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from the unaudited
Woodbury Telephone Company Condensed Statements of Income for the six
months ended September 30, 1995, and the Condensed Balance Sheets for the
period ended September 30, 1995.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> $2,078,290
<SECURITIES> 0
<RECEIVABLES> 2,755,101
<ALLOWANCES> (60,000)
<INVENTORY> 474,971
<CURRENT-ASSETS> 5,679,910
<PP&E> 41,259,476
<DEPRECIATION> (20,573,636)
<TOTAL-ASSETS> 27,878,581
<CURRENT-LIABILITIES> 2,227,563
<BONDS> 9,000,000
<COMMON> 1,922,768
0
0
<OTHER-SE> 10,670,877
<TOTAL-LIABILITY-AND-EQUITY> 27,878,581
<SALES> 119,061
<TOTAL-REVENUES> 9,921,563
<CGS> 83,567
<TOTAL-COSTS> 7,042,277
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 626,254
<INCOME-PRETAX> 2,253,032
<INCOME-TAX> 921,574
<INCOME-CONTINUING> 1,331,458
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,331,458
<EPS-PRIMARY> 1.73
<EPS-DILUTED> 1.73
</TABLE>
