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, 1996 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 incorporation (IRS Employer Identification
or organization) Number)
299 Main Street South, Woodbury, Connecticut 06798
(Address of principal executive offices)
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, 1996
------- -----------------------------
Common Stock, par value $2.50 per share 769,107
<PAGE>
THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
INDEX
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets-
March 31, 1996 and December 31, 1995 3-4
Condensed Statements of Income-
Three months ended March 31, 1996 and 1995 5
Condensed Statements of Cash Flows
Three months ended March 31, 1996 and 1995 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 of Form 8-K 10
SIGNATURES 11
-1-
<PAGE>
THE WOODBURY TELEPHONE COMPANY
FORM 10-Q
FOR QUARTER ENDED MARCH 31, 1996
PART I
FINANCIAL INFORMATION
<PAGE>
<TABLE>
<CAPTION>
The Woodbury Telephone Company
Condensed Balance Sheets
(Unaudited)
ASSETS
March 31 December 31
1996 1995
(unaudited)
----------- ------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 2,042,684 $ 2,238,782
Accounts receivable, less allowance
for losses of $80,000 in 1996 and
$60,000 in 1995 1,695,909 1,589,030
Other receivables 1,811,638 1,254,484
Materials and supplies-at cost 483,545 421,306
Prepaid expenses 466,665 51,689
--------------- --------------
Total current assets 6,500,441 5,555,291
Telephone plant and other property:
In service 41,734,242 41,179,838
Accumulated depreciation (deduction) (21,452,883) (20,857,711)
---------------- ---------------
20,281,359 20,322,127
Other property 76,717 76,717
---------------- ---------------
20,358,076 20,398,844
Other assets:
1% Investment in Springwich Cellular
Limited Partnership 535,068 535,068
Deferred charges, less amortization 444,353 480,209
Regulatory asset 339,002 353,744
---------------- ----------------
1,318,423 1,369,021
$ 28,176,940 $ 27,323,156
================ ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
March 31 December 31
1996 1995
<S> <C> <C>
Current liabilities:
Accounts payable $ 1,854,957 $ 1,281,373
Advance billings and customers' deposits 285,947 286,640
Accrued interest 135,000 337,500
Income taxes 280,386 33,142
---------------- -----------------
Total current liabilities 2,556,290 1,938,655
Long-term debt 9,000,000 9,000,000
Deferred credits:
Income taxes 1,953,060 2,044,044
Investment tax credits 258,114 276,114
Regulatory liability 782,404 808,735
---------------- -----------------
2,993,578 3,128,893
Other long-term liabilities 477,374 453,872
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 9,751,536 9,403,574
--------------- -----------------
13,149,698 12,801,736
--------------- -----------------
$ 28,176,940 $ 27,323,156
=============== =================
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
<CAPTION>
The Woodbury Telephone Company
Condensed Statements of Income (Unaudited)
Three months ended March 31:
1996 1995
------------- ------------
<S> <C> <C>
Operating revenues:
Local service $ 798,838 $ 744,009
Network service 2,503,854 2,171,852
Other 234,244 241,554
Provision for uncollectibles
(deduction) (25,308) (3,529)
------------- -------------
3,511,628 3,153,886
Operating expenses:
Maintenance 747,945 774,350
Depreciation and amortization 708,071 684,596
General office 317,278 233,803
Commercial 348,644 332,818
Other 231,038 220,566
------------ ----------
2,352,976 2,246,133
------------ -------------
1,158,652 907,753
Other income:
Rental of telephone equipment
and other, net 52,100 116,880
Interest 38,377 30,530
------------ -------------
90,477 147,410
------------ -------------
1,249,129 1,055,163
Interest expense 212,235 206,885
------------ -------------
Income before income taxes 1,036,894 848,278
Income taxes 396,671 324,663
------------ -------------
Net income 640,223 523,615
============ =============
Per share of common stock:
Net income $0.83 $0.68
====== ======
Dividends $0.38 $0.38
====== ======
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)
Three Months Ended March 31:
1996 1995
----------- ----------
<S> <C> <C>
Operating Activities
Net income $ 640,223 $ 523,615
Depreciation 672,213 648,738
Other (584,828) (614,189)
------------ -----------
Net Cash Provided By
Operating Activities 727,608 558,164
Investing Activities
Purchases of telephone plant
and other property (631,445) (434,648)
------------ -----------
Net Cash Used By Investing
Activities (631,445) (434,648)
Financing Activities
Dividends (292,261) (292,261)
------------- -----------
Net Cash Used By Financing
Activities (292,261) (292,261)
------------- -----------
Decrease In Cash And Cash
Equivalents (196,098) (168,745)
Cash and cash equivalents
At beginning of period 2,238,782 1,942,924
------------ -------------
Cash And Cash Equivalents At
End Of Period $2,042,684 $1,774,179
============ ==============
See accompanying notes.
</TABLE>
THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
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, 1996 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1996. 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, 1995.
The condensed balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date.
<PAGE>
THE WOODBURY TELEPHONE COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
MARCH 31, 1996
<TABLE>
<CAPTION>
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 March 31:
1996 1995
----------- ----------
<S> <C> <C>
Amount based on statutory federal
income tax rate $ 373,282 $ 288,415
State income taxes, less federal
tax effect 78,700 64,384
Investment tax credit amortization (18,000) (18,000)
Other (37,311) (10,136)
------------- ------------
Income Taxes $ 396,671 $ 324,663
============= ============
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Operating revenues increased by $357,742 (11.3%) in the quarter ended March 31,
1996 compared to 1995. Local service revenues increased by $54,829 (7.4%) for
the three months ended March 31, 1996 over the comparable 1995 period.
This increase resulted primarily from anincrease of 3.9% in the number of
access lines served by the Company from March 31, 1995 to March 31, 1996, and
from the introduction of CLASS services, such as Caller ID and Selective
Call-Forwarding, in May 1995. Network service revenues increased by
$332,002 (15.3%) for the three-month period ended March 31, 1996 compared to
1995, resulting mainly from increased customer use of the network to make
calls beyond the local calling area. In addition, in the 1996 period, the
Company recognized network service revenues of approximately
$145,200 resulting from the re-classification of access provided for certain
calls terminating in the Company's service area from January 1995 through
February 1996. This access was previously considered inter-LATA, subject to
pooling through the National Exchange Carriers Association (NECA). Based on
be intra-LATA, not subject to pooling, resulting in a higher retention of
access revenues by the Company.
Total operating expenses increased by $106,843 (4.8%) in the quarter ended
March 31, 1996 compared to 1995. Depreciation and amortization expenses
increased by $23,475 (3.4%) for the 1996 period compared to 1995, reflecting
increased investment in telephone plant in service. The increase in the
remainder of total operating expenses in 1996 over the comparable 1995 period
reflects additional expenses, including compensation and benefits, to meet
growing customer, regulatory, and environmental demands. Other income decreased
by $64,780 (55.4%) for the three-month period in 1996 from the comparable 1995
period due primarily to decreased sales of single-line and key system terminal
equipment.
As of March 31, 1996 current assets exceeded current liabilities by $3,944,151
reflecting an increase of $327,515 compared to December 31, 1995. Cash
provided by operating activities for the three months ended March 31, 1996
was $727,608, an increase of $169,444 over the comparable period for 1995. The
Company anticipates that available cash, including that provided by current
operating activities, will be sufficient to cover capital expenditures and
dividends for the foreseeable future.
<PAGE>
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 March 31, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
DATE By
Donald E. Porter
President and Treasurer
DATE By
William R. Platt
Assistant Treasurer
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary information extracted from
the unaudited Woodbury Telephone Company Condensed
Statements of Income for the three months ended March 31,
1996, and the Condensed Balance Sheets as of March 31, 1996.
</LEGEND>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MARCH-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 20,358,076
<OTHER-PROPERTY-AND-INVEST> 611,785
<TOTAL-CURRENT-ASSETS> 6,500,441
<TOTAL-DEFERRED-CHARGES> 444,353
<OTHER-ASSETS> 339,002
<TOTAL-ASSETS> 28,176,940
<COMMON> 1,922,768
<CAPITAL-SURPLUS-PAID-IN> 1,475,394
<RETAINED-EARNINGS> 9,751,536
<TOTAL-COMMON-STOCKHOLDERS-EQ> 13,149,698
0
0
<LONG-TERM-DEBT-NET> 9,000,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 6,027,242
<TOT-CAPITALIZATION-AND-LIAB> 28,176,940
<GROSS-OPERATING-REVENUE> 3,511,628
<INCOME-TAX-EXPENSE> 396,671
<OTHER-OPERATING-EXPENSES> 2,352,976
<TOTAL-OPERATING-EXPENSES> 2,749,647
<OPERATING-INCOME-LOSS> 761,981
<OTHER-INCOME-NET> 90,477
<INCOME-BEFORE-INTEREST-EXPEN> 852,458
<TOTAL-INTEREST-EXPENSE> 212,235
<NET-INCOME> 640,223
0
<EARNINGS-AVAILABLE-FOR-COMM> 640,223
<COMMON-STOCK-DIVIDENDS> 292,261
<TOTAL-INTEREST-ON-BONDS> 202,500
<CASH-FLOW-OPERATIONS> 727,608
<EPS-PRIMARY> .83
<EPS-DILUTED> .83
</TABLE>
