<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 March 31, 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 March 31, 1995, there were 1,976,365 shares of Common Stock outstanding.
(Total number of pages - 9)
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MID-PLAINS TELEPHONE, INC.
1st QUARTER REPORT ON FORM 10-Q
INDEX
Page
Number
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets -
March 31, 1995 and December 31, 1994 3 - 4
Consolidated Statements of Income -
Three Months Ended March 31, 1995 and 1994 5
Consolidated Statements of Cash Flow -
Three Months Ended March 31, 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
PART II. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 9
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MID-PLAINS TELEPHONE, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
March 31, December 31,
1995 1994
In Thousands
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 719 $ 186
Accounts receivable -
Due from subscribers 864 811
Customer sales and services 1,044 725
Other, principally connecting companies 1,612 2,032
Inventories
Plant materials and supplies 260 281
Communications systems and parts 883 863
Other 215 393
5,597 5,291
PROPERTY, PLANT AND EQUIPMENT
Telephone, in service and under
construction, at original cost 41,778 41,041
Less Accumulated depreciation (16,099) (15,383)
25,679 25,658
INVESTMENT AND OTHER ASSETS
Cellular limited partnership interest 2,379 2,379
Other 567 561
2,946 2,940
$ 34,222 $ 33,889
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 3,379 $ 3,380
Notes payable to banks 950 1,300
Accounts payable 2,524 2,798
Accrued taxes 605 0
Other 784 648
8,242 8,126
LONG-TERM DEBT 3,358 3,574
DEFERRED CREDITS
Income taxes 2,746 2,742
Investment tax credits 284 300
Other 926 915
3,956 3,957
STOCKHOLDERS' EQUITY
Common stock, par value $3.33-1/3
share; authorized 3,000,000 shares;
issued 1,976,365 and 1,974,400
shares, respectively 6,588 6,581
Additional paid-in capital 4,863 4,806
Retained earnings 7,215 6,845
18,666 18,232
$ 34,222 $ 33,889
The accompanying notes to consolidated financial statements are an integral
part of these statements. (UNAUDITED)
</TABLE>
<PAGE>
MID-PLAINS TELEPHONE, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
Three Months Ended
March 31, March 31,
1995 1994
In Thousands Except For Per Share Data
<S> <C> <C>
OPERATING REVENUES
Telephone operations
Local network services $ 983 $ 690
Network access and long
distance services 2,834 2,398
Other 545 485
System sales and services 1,384 1,295
5,746 4,868
OPERATING EXPENSES
Telephone operations
Plant operations 698 643
Depreciation and amortization 733 554
Customer operations 620 516
Corporate operations 589 503
General taxes 240 208
System sales and services
Cost of sales and services 839 753
Operating expenses 492 461
4,211 3,638
OPERATING INCOME BEFORE INCOME TAXES 1,535 1,230
Other income 4 2
Interest expense (213) (228)
INCOME BEFORE INCOME TAX EXPENSE 1,326 1,004
Income tax expense 501 371
NET INCOME $ 825 $ 633
Average shares considered outstanding 1,975 1,965
Earnings per share $ .42 $ .32
Cash dividends per share $ .23 $ .21
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>
Three Months Ended
March 31, March 31,
1995 1994
In Thousands
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 825 $ 633
Add (Deduct) adjustments to reconcile
net income to net cash provided by
operating activities:
Depreciation and amortization 756 573
Deferred income taxes (24) (47)
Change in accounts and other receivables (27) (16)
Change in inventories 1 30
Change in accounts payable (274) (352)
Change in other assets and liabilities 1,016 (391)
Net cash from operating activities 2,273 430
CASH FLOWS FROM FINANCING ACTIVITIES
Repay long-term debt (216) (192)
Change in notes payable to banks (350) 0
Dividends paid (454) (413)
Stock purchase plan 63 45
Net cash used in financing activities (957) (560)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (773) (754)
Other, net (10) 40
Net cash used in investing activities (783) (714)
CASH AND CASH EQUIVALENTS
Net increase (decrease) during period 533 (844)
Beginning of period 186 1,606
End of period $ 719 $ 762
Cash paid during the period:
Interest $ 209 $ 163
Income taxes $ 69 $ 60
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 March 31, 1995
and December 31, 1994, and the results of operations and cash flows for
the three months ended March 31, 1995 and 1994. The results for the
three months ended March 31, 1995 are not necessarily indicative of the
results of operations which may be expected for the entire year ending
December 31, 1995.
2. In 1994, the cellular partnership in which the Company has a limited
interest made a capital call of $2.0 million due July 1, 1995. In
March, 1995, the Company determined that it would make this additional
contribution to the partnership.
<PAGE>
MID-PLAINS TELEPHONE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Net income increased $192,000 for the first quarter 1995 compared to
the first quarter of 1994. The primary factors that influenced the
results of operations are discussed below.
Telephone operating revenues increased $789,000 for the first quarter
of 1995 as compared to the first quarter of 1994. This increase was
due primarily to the growth in interstate network access, the provision
of long distance services, and $220,000 due to increased local network
service rates in January 1, 1995.
Telephone operating expenses, which include plant, depreciation and
amortization, customer, corporate, and general taxes, increased by
$456,000 in the first quarter of 1995 as compared to the first quarter
of 1994. Changes in plant, customer and corporate expenses were due
primarily to growth in internal operations, including added personnel,
and the provision of long distance services. The increase in
depreciation of $179,000 was due to a change in central office
depreciation of $125,000 and added plant.
System sales and service revenues increased $89,000 for the first
quarter of 1995 as compared to the first quarter of 1994. Cost of
sales, as a percentage of operating revenues, were 61% for the first
quarter of 1995 and 58% for the first quarter of 1994. Operating
expenses increased by $31,000 in the first quarter of 1995 as compared
to the first quarter of 1994.
Income tax expense increased by $130,000 in the first quarter of 1995
as compared to the first quarter of 1994 due primarily to higher levels
of pre-tax income.
LIQUIDITY AND CAPITAL COMMITMENTS
The Company plans to meet its 1995 cash requirements with cash flows
from operations and debt financing. This financing includes a 5 year
subordinated debentures which the Company is offering to Wisconsin
residents, in an amount not to exceed $5 million. Bank lines of credit
available to the Company are currently $5 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
three months ended March 31, 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 May 12, 1995 /s/Howard G. Hopeman
Howard G. Hopeman, Vice-President and
Chief Financial Officer
Date May 12, 1995 /s/Fredrick E. Urben
Fredrick E. Urben, Vice-President,
Administration & Human Relations, Secretary
& Treasurer
<PAGE>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 719
<SECURITIES> 0
<RECEIVABLES> 3,520
<ALLOWANCES> 0
<INVENTORY> 1,143
<CURRENT-ASSETS> 5,597
<PP&E> 41,778
<DEPRECIATION> 16,099
<TOTAL-ASSETS> 34,222
<CURRENT-LIABILITIES> 8,242
<BONDS> 0
<COMMON> 6,588
0
0
<OTHER-SE> 12,078
<TOTAL-LIABILITY-AND-EQUITY> 34,222
<SALES> 0
<TOTAL-REVENUES> 5,746
<CGS> 0
<TOTAL-COSTS> 4,211
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 213
<INCOME-PRETAX> 1,326
<INCOME-TAX> 501
<INCOME-CONTINUING> 825
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 825
<EPS-PRIMARY> .42
<EPS-DILUTED> .42
<PAGE>
</TABLE>
