<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D .C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For Quarter ended June 30, 1995 Commission file number 0-8320
MID-PLAINS TELEPHONE, INC.
(Exact Name of Registrant as Specified in Its Charter)
WISCONSIN 39-0274450
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
1912 Parmenter Street, P.O. Box 70, Middleton, Wisconsin 53562
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (608) 831-1000
Indicate by checkmark 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
As of June 30, 1995, there were 1,977,041 shares of Common Stock outstanding.
(Total number of pages - 10)
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MID-PLAINS TELEPHONE, INC.
2nd QUARTER REPORT ON FORM 10-Q
INDEX
Page
Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
June 30, 1995 and December 31, 1994 3 - 4
Consolidated Statements of Income -
Three and Six Month Periods Ended
June 30, 1995 and 1994 5
Consolidated Statements of Cash Flow -
Six Months Ended June 30, 1995 and 1994 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results
of Operations 8 - 9
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 10
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MID-PLAINS TELEPHONE, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
June 30, December 31,
1995 1994
In Thousands
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 459 $ 186
Accounts receivable -
Due from subscribers 881 811
Customer sales and services 827 725
Other, principally connecting companies 1,404 2,032
Inventories
Plant materials and supplies 397 281
Communications systems and parts 900 863
Other 773 393
5,641 5,291
PROPERTY, PLANT AND EQUIPMENT
Telephone, in service and under
construction, at original cost 43,071 41,041
Less Accumulated depreciation (16,823) (15,383)
26,248 25,658
INVESTMENT AND OTHER ASSETS
Cellular limited partnership interest 4,374 2,379
Other 574 561
4,948 2,940
$ 36,837 $ 33,889
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 883 $ 3,380
Notes payable to banks 4,000 1,300
Accounts payable 2,435 2,798
Accrued taxes 259 0
Other 533 648
8,110 8,126
LONG-TERM DEBT 5,637 3,574
DEFERRED CREDITS
Income taxes 2,745 2,742
Investment tax credits 268 300
Other 937 915
3,950 3,957
STOCKHOLDERS' EQUITY
Common stock, par value $3.33-1/3
share; authorized 3,000,000 shares;
issued 1,977,041 and 1,974,400
shares, respectively 6,590 6,581
Additional paid-in capital 4,882 4,806
Retained earnings 7,668 6,845
19,140 18,232
$ 36,837 $ 33,889
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
/TABLE
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MID-PLAINS TELEPHONE, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
In Thousands Except For Per Share Data
<S> <C> <C> <C> <C>
OPERATING REVENUES
Telephone operations
Local network services $1,051 $1,300 $2,034 $1,990
Network access and long
distance network service 2,872 2,441 5,706 4,839
Other 646 464 1,191 949
System sales and services 1,450 1,435 2,834 2,730
6,019 5,640 11,765 10,508
OPERATING EXPENSES
Telephone operations
Plant operations 675 797 1,373 1,440
Depreciation 753 571 1,486 1,125
Customer operations 679 685 1,299 1,201
Corporate operations 552 644 1,141 1,147
General taxes 252 211 492 419
System sales and services
Cost of sales and services 908 818 1,747 1,571
Operating expenses 494 493 986 954
4,313 4,219 8,524 7,857
OPERATING INCOME BEFORE
INCOME TAXES 1,706 1,421 3,241 2,651
Other income 3 0 7 2
Interest expense (192) (227) (405) (455)
INCOME BEFORE INCOME
TAX EXPENSE 1,517 1,194 2,843 2,198
Income tax expense 571 443 1,072 814
NET INCOME $ 946 $ 751 $1,771 $1,384
Average shares considered
outstanding 1,977 1,968 1,976 1,967
Earnings per share $ .46 $ .38 $ .90 $ .70
Cash dividends per share $ .25 $ .21 $ .48 $ .42
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
/TABLE
<PAGE>
MID-PLAINS TELEPHONE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE> Six Months Ended
June 30, June 30,
1995 1994
In Thousands
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $1,771 $1,384
Add (Deduct) adjustments to reconcile
net income to net cash provided by
operating activities:
Depreciation and amortization 1,530 1,164
Deferred income taxes (53) (71)
Change in accounts and other receivables 382 (58)
Change in inventories (153) 85
Change in accounts payable (363) 448
Change in other assets and liabilities (114) (882)
Net cash from operations 3,000 2,070
CASH FLOWS FROM FINANCING ACTIVITIES
Current maturities of long-term debt
to be replaced with long-term debt (2,497) 0
Long-term debt borrowings 2,497 0
Repay long-term debt (434) (390)
Change in notes payable to banks 2,699 0
Dividends paid (948) (826)
Stock purchase plan 85 116
Net cash used in financing 1,402 (1,100)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (2,116) (1,585)
Cellular Investment (1,995) 0
Other, net (18) 0
Net cash used in investing (4,129) (1,585)
CASH AND CASH EQUIVALENTS
Net increase during period 273 (615)
Beginning of period 186 1,606
End of period $ 459 $ 991
Cash paid during the period:
Interest $ 401 $ 458
Income taxes $ 867 $ 421
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
<PAGE>
MID-PLAINS TELEPHONE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The unaudited financial statements included herein have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information in footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant
to such rules and regulations, although the Company believes the
disclosures are adequate to make the information presented not
misleading. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes thereto included
in the Company's Form 10-K for the year ended December 31, 1994.
In the opinion of the Company, the accompanying financial statements
contain all adjustments (consisting of normal recurring accruals)
necessary to present fairly the financial position as of June 30, 1995
and December 31, 1994, and the results of operations and cash flows for
the six months ended June 30, 1995 and 1994. The results for the six
months ended June 30, 1995 are not necessarily indicative of the results
of operations which may be expected for the entire year ending December
31, 1995.
2. As of July 1, 1995, the Company sold $5.0 million of five-year
subordinated debentures to replace the $2.5 million of debentures due
July 1, 1995, and to meet other 1995 cash requirements. Accordingly,
the debentures due July 1, 1995 have been classified as long-term debt
at June 30, 1995.
<PAGE>
MID-PLAINS TELEPHONE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Net income increased $195,000 and $387,000 for the second quarter and
first six months of 1995, respectively, compared to the same periods in
1994. The primary factors that influenced the results of operations
are discussed below.
Telephone operating revenues increased $364,000 and $1,153,000 for the
second quarter and first six months of 1995, respectively, compared to
the same periods in 1994. These increases were due in part to
increased local network service rates in 1995 of $220,000 and $453,000
for the second quarter and first six months of 1995, respectively.
Increases were also due to growth in local and network access and the
provision of long distance services. Local network services were reduced as
a result of a second quarter 1994 credit of $574,000 to eliminate regulatory
liabilities no longer considered payable.
Telephone operating expenses, which include plant, depreciation and
amortization, customer, corporate, and general taxes, increased $3,000
and $459,000 for the second quarter and first six months ended June 30,
1995, respectively, compared to the same periods in 1994. Increases in
plant, customer and corporate expenses, due primarily to growth in
internal operations and the cost of long distance services, were offset
by a $388,000 charge in the second quarter of 1994 to eliminate
regulatory assets no longer considered recoverable. Depreciation
increased due to growth in telephone plant, and increased central office
depreciation of $119,000 and $238,000 for the second quarter and first six
months of 1995, respectively, in connection with the pending change-out of
central office equipment.
System sales and service revenues increased $15,000 and $104,000 for
the second quarter and first six months ended June 30, 1995,
respectively, compared to the same periods in 1994. Cost of sales, as
a percentage of operating revenues, increased 5.6% and 4.1% for the
second quarter and first six months ended June 30, 1995, respectively,
compared to the same periods in 1994. Operating expenses increased
$1,000 and $32,000 for the second quarter and first six months ended
June 30, 1995, respectively, compared to the same periods in 1994.
LIQUIDITY AND CAPITAL COMMITMENTS
As of July 1, 1995, the Company sold $5.0 million of debentures to
replace $2.5 million of debentures due July 1, 1995 and to meet
other 1995 cash requirements. The Company plans to meet remaining
1995 cash requirements with cash flows from operations and
additional debt financing. As of June 30, 1995, the Company has
unused bank lines-of-credit of $2 million.
<PAGE>
MID-PLAINS TELEPHONE, INC.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits I. - None
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for
the six months ended June 30, 1995.
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.
MID-PLAINS TELEPHONE, INC.
(Registrant)
Date August 14, 1995 /s/Howard G. Hopeman
Howard G. Hopeman, Vice-President and
Chief Financial Officer
Date August 14, 1995 /s/Fredrick E. Urben
Fredrick E. Urben, Vice-President,
Administration, Human Relations
Secretary & Treasurer
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 459
<SECURITIES> 0
<RECEIVABLES> 3,112
<ALLOWANCES> 0
<INVENTORY> 1,297
<CURRENT-ASSETS> 5,641
<PP&E> 43,071
<DEPRECIATION> 16,823
<TOTAL-ASSETS> 36,837
<CURRENT-LIABILITIES> 8,110
<BONDS> 0
<COMMON> 6,590
0
0
<OTHER-SE> 12,550
<TOTAL-LIABILITY-AND-EQUITY> 36,837
<SALES> 0
<TOTAL-REVENUES> 11,765
<CGS> 0
<TOTAL-COSTS> 8,524
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 405
<INCOME-PRETAX> 2,843
<INCOME-TAX> 1,072
<INCOME-CONTINUING> 1,771
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,771
<EPS-PRIMARY> .90
<EPS-DILUTED> .90
<PAGE>
</TABLE>
