<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000766561
<NAME> HICKORY TECH CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 9198
<SECURITIES> 4704
<RECEIVABLES> 9302
<ALLOWANCES> 135
<INVENTORY> 2991
<CURRENT-ASSETS> 24776
<PP&E> 78482
<DEPRECIATION> 43449
<TOTAL-ASSETS> 72723
<CURRENT-LIABILITIES> 7836
<BONDS> 0
<COMMON> 2269
0
0
<OTHER-SE> 54097
<TOTAL-LIABILITY-AND-EQUITY> 72723
<SALES> 16666
<TOTAL-REVENUES> 46091
<CGS> 9900
<TOTAL-COSTS> 34865
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 64
<INCOME-PRETAX> 11854
<INCOME-TAX> 4752
<INCOME-CONTINUING> 7102
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7102
<EPS-PRIMARY> 1.39
<EPS-DILUTED> 1.39
</TABLE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
- - or -
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-13721
HICKORY TECH CORPORATION
P.O. Box 3248
221 East Hickory Street
Mankato, Minnesota 56002-3248
(800) 326-5789
Incorporated in Minnesota I.R.S. Employer Identification
41-1524393
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 and 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. (X)
The number of shares outstanding of each of the Registrant's classes of common
stock, as of the latest practicable date: 5,133,246 shares of no par common
stock as of September 30, 1995.
<TABLE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1995
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
<CAPTION>
In Thousands For Quarter Ended For 9 Months Ended
9-30-95 9-30-94 9-30-95 9-30-94
-------- -------- -------- --------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Telephone $ 7,421 $ 6,746 $ 22,592 $ 19,902
Computer 2,585 1,997 6,833 5,824
Equipment Sales 4,064 3,759 10,874 11,370
Telecommunications Product
Development 1,801 2,102 5,792 6,192
-------- -------- -------- --------
TOTAL OPERATING REVENUES 15,871 14,604 46,091 43,288
COSTS AND EXPENSES
Cost of Sales 3,543 3,520 9,900 10,626
Operating Expenses 6,656 5,862 19,275 17,371
Depreciation 1,509 1,282 4,208 3,900
Amortization of Intangibles 466 419 1,482 1,046
-------- -------- -------- --------
TOTAL COSTS AND EXPENSES 12,174 11,083 34,865 32,943
-------- -------- -------- --------
OPERATING INCOME 3,697 3,521 11,226 10,345
OTHER INCOME 288 89 692 325
INTEREST EXPENSE (18) (38) (64) (86)
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 3,967 3,572 11,854 10,584
INCOME TAXES 1,591 1,349 4,752 3,985
-------- -------- -------- --------
CONSOLIDATED NET INCOME $ 2,376 $ 2,223 $ 7,102 $ 6,599
======== ======== ======== ========
EARNINGS PER SHARE $0.46 $0.43 $1.39 $1.29
DIVIDENDS PER SHARE $0.25 $0.22 $0.75 $0.65
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1995
CONSOLIDATED BALANCE SHEET (UNAUDITED)
<CAPTION>
In Thousands 9-30-95 12-31-94
-------- --------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 9,198 $ 5,065
Temporary Cash Investments 1,942 1,887
Receivables, Net of Allowance 9,167 7,258
Taxes Receivable 311 0
Inventories 2,991 2,948
Deferred Tax Benefit and Other 1,167 1,029
-------- --------
TOTAL CURRENT ASSETS 24,776 18,187
INVESTMENTS 2,762 2,648
PROPERTY, PLANT & EQUIPMENT:
Telecommunications Plant 67,936 63,645
Other Property and Equipment 10,546 10,222
-------- --------
TOTAL 78,482 73,867
Less Accumulated Depreciation 43,449 38,236
-------- --------
NET PROPERTY, PLANT AND EQUIPMENT 35,033 35,631
OTHER ASSETS:
Intangible Assets 9,399 10,649
Note Receivable 340 252
Miscellaneous 413 413
-------- --------
TOTAL OTHER ASSETS 10,152 11,314
-------- --------
TOTAL ASSETS $ 72,723 $ 67,780
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 5,352 $ 4,275
Notes Payable 0 763
Accrued Taxes 0 404
Advanced Billings & Deposits 2,283 1,295
Current Maturities of Long-Term Debt 201 219
-------- --------
TOTAL CURRENT LIABILITIES 7,836 6,956
LONG-TERM DEBT, NET OF CURRENT MATURITIES 1,145 1,295
DEFERRED CREDITS:
Investment Tax Credits 260 337
Income Taxes 4,339 4,395
Other 2,777 1,955
-------- --------
TOTAL DEFERRED CREDITS 7,376 6,687
SHAREHOLDERS' EQUITY:
Common Stock 2,269 2,002
Reinvested Earnings 54,097 50,840
-------- --------
TOTAL SHAREHOLDERS' EQUITY 56,366 52,842
-------- --------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 72,723 $ 67,780
======== ========
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1995
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<CAPTION>
For Nine Months Ended
In Thousands 9-30-95 9-30-94
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 7,101 $ 6,599
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Depreciation and Amortization 5,690 4,945
Loss Resulting from Disposition of Assets 415 0
(Increase) Decrease in:
Receivables (1,909) 287
Taxes Receivable (311) 0
Inventory and Other (281) 640
Increase (Decrease) in:
Accounts Payable 1,076 886
Accrued Taxes (404) (128)
Advance Billings & Deposits 988 47
Deferred Investments Tax Credits (77) (91)
Deferred Income Taxes (56) (265)
Other 822 194
-------- --------
Net Cash Provided by Operating Activities 13,054 13,114
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant & Equipment (3,670) (4,599)
Additions to Intangible Assets (641) (1,058)
Issuance of Note Receivable (88) 0
Increase in Investments (114) (407)
(Increase) Decrease in Temporary Cash Investments (55) 1,297
Purchase of Intangible Assets 0 (200)
Acquisition 0 (6,300)
Proceeds from Sale of Assets 155 0
Other 0 33
-------- --------
Net Cash Used in Investing Activities (4,413) (11,234)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Long-Term Debt 0 521
Repayments of Debt (931) (236)
Proceeds from Issuance of Common Stock 267 263
Acquisition of Common Stock 0 (777)
Dividends Paid (3,844) (3,333)
-------- --------
Net Cash Used in Financing Activities (4,508) (3,562)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,133 (1,682)
CASH AND CASH EQUIVALENTS At Beginning of Year 5,065 8,478
-------- --------
CASH AND CASH EQUIVALENTS At End of Period $ 9,198 $ 6,796
======== ========
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1995
PART 1. FINANCIAL INFORMATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
The preceding unaudited Consolidated Statement of Income, Balance
Sheet and Statement of Cash Flows include all adjustments which are,
in the opinion of management, necessary for a fair statement of the
results for the interim periods being reported.
NOTE 1. BASIS OF CONSOLIDATION
The Registrant is a diversified communications company headquartered
in Mankato, Minnesota. The consolidated financial statements of the
Registrant include Hickory Tech Corporation, the parent company, and
its seven operating subsidiaries. The companies and operations of the
Registrant are grouped into four primary lines of business.
MANKATO CITIZENS TELEPHONE COMPANY, MID-COMMUNICATIONS, INC. and AMANA
COLONIES TELEPHONE COMPANY are local exchange telephone companies.
Mankato Citizens Telephone Company also owns and operates a direct
broadcast satellite license under the trade name DirectVision. CABLE
NETWORK, INC. owns and operates fiber optic cable facilities for the
transportation of long distance communications. It also operates cable
television systems and owns partnership interests in three cellular
properties in south central Minnesota. These four wholly-owned
subsidiaries comprise the Registrant's Telephone Segment.
COMPUTOSERVICE, INC. provides data processing for the Telephone
Segment as well as other unrelated telephone companies. It also
provides services to interexchange carriers such as AT&T, MCI and U S
West Communications, Inc. through its subsidiary, National Independent
Billing, Inc. The operations of this wholly-owned subsidiary
constitute the Registrant's Computer Segment.
COLLINS COMMUNICATIONS SYSTEMS CO. sells, installs and services
telecommunications equipment in the retail market in the metropolitan
Minneapolis/St. Paul area. The Registrant's Equipment Sales Segment is
made up of this wholly-owned subsidiary, as well as the retail sales
and service operations of the Registrant's local exchange telephone
companies in southern Minnesota and east-central Iowa.
DIGITAL TECHNIQUES, INC. develops and sells unique business telephone
system interface equipment. Its operations comprise the Registrant's
Telecommunications Product Development Segment. The Registrant owns
81% of Digital Techniques, Inc.
The accounting policies of the Registrant are in conformity with
generally accepted accounting principles and, where applicable,
conform to the accounting principles as prescribed by federal and
state telephone utility regulatory authorities.
All intercompany transactions have been eliminated from the
consolidated financial statements.
NOTE 2. EARNINGS AND CASH DIVIDENDS PER COMMON SHARE
Earnings per common share are based on the weighted average number of
shares of common stock equivalents outstanding during all periods. For
the quarter ended September 30, 1995, the earnings per common share
calculation was based on 5,127,569 shares. For the nine months ended
September 30, 1995, the calculation was based on 5,125,517 shares. For
the quarter ended September 30, 1994, the earnings per common share
calculation was based on 5,125,574 shares. For the nine months ended
September 30, 1994, the calculation was based on 5,129,370 shares.
Cash dividends are based on the number of common shares outstanding at
the respective record dates. The number of shares outstanding as of
the record date for the first, second and third quarter of 1995 and
1994 were as follows:
1995 1994
1st Quarter 5,124,291 5,129,029
2nd Quarter 5,124,656 5,129,395
3rd Quarter 5,125,041 5,125,495
NOTE 3. INVENTORIES
Inventories are stated at the lower of average cost or market and
consist of the following:
(In Thousands) 9-30-95 12-31-94
Finished Goods $ 429 $ 304
Work in Process 42 433
Materials and Supplies 2,520 2,211
------- -------
Total $ 2,991 $ 2,948
NOTE 4. COMMON STOCK
The Registrant's common stock has no par value. There are 25,000,000
shares authorized. There were 5,133,246 shares outstanding on
September 30, 1995, and 5,124,291 shares outstanding on December 31,
1994.
Pursuant to the Employee Stock Purchase Plan, 8,205 shares of Common
Stock were issued on September 1, 1995 to the employees who
participated in the plan.
Pursuant to the Retainer Stock Plan for Directors, 385 shares of
common stock were issued in lieu of retainers to five members of the
Registrant's Board of Directors on July 14, 1995. Also, pursuant to
the plan, 365 shares of common stock were issued in lieu of retainers
on March 31, 1995.
NOTE 5. CORPORATE DEVELOPMENT
On June 15, 1995, the HTC Group, consisting of the Registrant and
EBSco Limited, a District of Columbia corporation, entered into five
purchase agreements with U S West Communications, Inc. (U. S. West) to
purchase the assets of eighty-two rural telephone exchanges in
Minnesota, Iowa and Nebraska. The Registrant executed two purchase
agreements to acquire assets of eight exchanges in Minnesota for
$25,900,000 and six exchanges in Iowa for $22,100,000. The Registrant
will own and operate its eight Minnesota exchanges through a wholly-
owned subsidiary, Heartland Telecommunications Company of Minnesota.
The six exchanges in Iowa will be owned and operated through a wholly-
owned subsidiary, Heartland Telecommunications Company of Iowa. EBSco
Limited has assigned its interest in its three purchase agreements to
Alpine Communications, L.C., an Iowa Limited Liability Company
("Alpine"), and Tritech Communications, L.C., an Iowa Limited
Liability Company ("Tritech"). Alpine will acquire the assets of eight
exchanges in Iowa and Tritech will acquire sixty exchanges in Iowa,
Minnesota and Nebraska. The Registrant will provide management
services to the exchanges acquired by Tritech. The Registrant will
receive specified contractual fees for management services supplied to
the Tritech exchanges. The Registrant will also provide billing
services for the exchanges purchased by Alpine and Tritech. The
purchases must be approved by the Federal Communications Commission
and the Public Utilities Commissions in Iowa, Minnesota and Nebraska.
It is anticipated that the approvals for the purchase of the exchanges
will not occur until the first half of 1996.
The Registrant is anticipating utilizing new long-term debt
instruments to fund the majority of its $48,000,000 acquisition price
for the U. S. West property. Negotiations are presently taking place
to secure such funding for the Registrant. No difficulty is
anticipated in obtaining such financing . The timetable for closing
these transactions is contingent upon Tritech obtaining financing for
its acquisitions. Tritech expects to secure such financing by November
30, 1995. Management believes that costs related to the acquisition
of the exchanges by the other parties to the transaction will add
approximately $6,000,000 to the Registrant's acquisition price.
The Registrant anticipates using existing cash for this additional
cost.
NOTE 6. OTHER
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in the Registrant's
December 31, 1994 Form 10-K.
HICKORY TECH CORPORATION
SEPTEMBER 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION.
Consolidated Net Income for the quarter ended September 30, 1995, was
6.9% higher than the same period in 1994, as illustrated by the
following table:
NET INCOME (thousands) 1995 1994 1993 1992
1st Quarter $2,221 $2,121 $2,233 $1,875
2nd Quarter 2,505 2,255 1,976 1,697
3rd Quarter 2,376 2,223 1,832 2,017
Operating Revenues were 8.7% higher for the quarter ended September
30, 1995, than for the quarter ended September 30, 1994, as
illustrated by the following table:
OPERATING REVENUES (thousands)1995 1994 1993 1992
1st Quarter $14,647 $14,095 $13,309 $12,543
2nd Quarter 15,573 14,589 12,762 13,535
3rd Quarter 15,871 14,604 12,628 16,192
A. Material changes in results of operations:
1. TELEPHONE - Operating Revenues for the third quarter of 1995 were
$675,000 or 10.0% higher than the same period in 1994. For the
nine months ended September 30, 1995, Operating Revenues were
$2,690,000 or 13.5% higher than the same period in 1994.
$2,248,000 of the year to date increase resulted from local
service and network access. This was primarily due to increased
local rates, a 4.7% growth in the number of access lines and 6.8%
higher message volumes. Local rate increases provided
approximately $450,000 of the increase. Part of the increase in
Operating Revenues is the result of having nine months of
operations at Amana Colonies Telephone Company (ACTC) in 1995
compared to six months in 1994. Operating Revenues at ACTC for
the three months ended March 31, 1995 were $257,000.
DirectVision, the Registrant's new satellite service, provided
$272,000 of revenues during the first nine months of 1995.
2. COMPUTER - Operating Revenues for the third quarter of 1995 were
$588,000 or 29.4% higher than the same period in 1994. For the
nine months ended September 30, 1995, Operating Revenues were
$1,009,000 or 17.3% higher than the nine months ended September
30, 1994. While this Segment has experienced a reduction in
volume from existing and expired contracts with certain
interexchange carriers, a new contract with MCImetro was executed
in March, 1995, which generated $1,020,000 of revenue during the
third quarter of 1995 and $1,959,000 during the nine months ended
September 30, 1995. This new contract provides for services to
the customer for the next three years, but is subject to
cancellation by the customer. This Segment also has a
contractual relationship with another interexchange carrier which
has not produced a sufficient volume of service to provide a
profit margin. Management is currently reviewing this contract
and its related costs. Until this situation is corrected profits
from the Computer Segment will continue to be below management's
projections.
3. EQUIPMENT SALES - Operating Revenues for this Segment were up
$305,000 or 8.1% for the third quarter of 1995 when compared to
the third quarter of 1994. For the nine months ended September
30, 1995, Operating Revenues were $496,000 or 4.4% lower than the
same period in 1994. The Registrant sold the assets of its
California division of Collins Communications Systems Co.
(Collins) on August 11, 1995. The loss of $415,000 resulting from
the sale of the division has been reflected in Operating
Expenses. Operating Revenues for the California division were
$438,000 lower for the third quarter of 1995 when compared to the
third quarter of 1994. For the nine months ended September 30,
1995, Operating Revenues for the California division were
$1,276,000 lower than the same period in 1994. The St. Paul
division of Collins completed a $1.6 million contract for the
installation of a new telephone system for a governmental
customer in the third quarter of 1995.
4. TELECOMMUNICATIONS PRODUCT DEVELOPMENT - Operating Revenues for
the quarter ended September 30, 1995 were $301,000 or 14.3% lower
than the third quarter of 1994. Operating Revenues for the nine
months ended September 30, 1995 were $400,000 or 6.5% lower than
the same period in 1994. Royalty revenues for the nine months
ended September 30, 1995, were $206,000 lower than for the same
period in 1994. Royalty revenues are generated from a right to
manufacture contract which was executed in 1994. Standard
product revenue is $630,000 ahead of last year's levels on a year
to date basis. This increase can primarily be attributed to the
implementation of distribution agreements with large national
equipment distributors such as the Regional Bell Operating
Companies and GTE. Conversely, revenue from sales to Other
Equipment Manufacturers (OEM) was $1,374,000 lower for the nine
months ended September 30, 1995, than for the comparable period
in 1994. However, OEM sales were ahead of expectations for 1995.
OEM sales are generally at a lower margin than standard product
sales. The profitability of this Segment improved over 1994 due
to the increase in its gross margins and reduced operating
expenses.
5. COST OF SALES - Consolidated Cost of Sales was $23,000 or 0.7%
higher for the quarter ended September 30, 1995, than for the
same period in 1994. For the nine months ended September 30,
1995, Cost of Sales was $726,000 or 6.8% lower than for the same
period in 1995. Operating Revenues for the two segments
(Equipment Sales and Telecommunications Product Development)
which generate most of the Cost of Sales were lower during the
nine months ended September 30, 1995 as described in previous
paragraphs. In terms of percentage of Operating Revenues from
these two segments, Cost of Sales was 59.4% for the nine months
ended September 30, 1995, compared to 60.5% for the same period
in 1994. The corresponding improvement in gross margin occurred
in spite of reductions in royalty revenue which had no associated
Cost of Sales. The improvement was the result of a change in the
revenue mix from OEM sales to standard product sales in the
Telecommunications Product Development Segment and better pricing
methods in the Equipment Sales Segment.
6. OPERATING EXPENSES - Operating Expenses for the quarter ended
September 30, 1995, were $794,000 or 13.5% higher than the same
period in 1994. For the nine months ended September 30, 1995,
Operating Expenses were $1,904,000 or 11.0% higher than in 1994.
The Registrant recorded a loss of $415,000 from the disposition
of assets of the California division of Collins Communications
Systems Co. Without the effect of this loss, the increase in
Operating Expenses over 1994 would have been 8.6% for the nine
months ended September 30, 1995. The Registrant's Computer
Segment incurred Operating Expenses for the nine months ended
September 30, 1995, which were $1,306,000 or 26.1% higher than
the same period in 1994. The increase in expenses related
primarily to development costs associated with contracts with two
of its major customers. Management is currently reviewing the
organizational structure of the Computer Segment and the
contractural relationships with its major customers.
7. AMORTIZATION OF INTANGIBLES - Amortization for the quarter ended
September 30, 1995, was $47,000 higher than for the quarter ended
September 30, 1994. For the nine months ended September 30, 1995,
Amortization was $436,000 higher than for the same period in
1994. Amortization of intangibles resulting from the acquisition
of Amana Colonies Telephone Company in April, 1994, represented
$60,000 of the year to date increase. Amortization of the license
fee for the new DBS service represented $86,000 of the increase.
Acceleration of the amortization of intangibles resulting from
the 1992 acquisition of the California division of Collins
Communications Systems Co. resulted in a $120,000 increase over
1994. The Registrant also accelerated the amortization of
capitalized software costs in its Computer Segment. The overall
increase in amortization of software costs over 1994 was
$255,000.
B. Material changes in financial condition:
1. CASH FLOWS - Cash and Cash Equivalents increased $4,133,000 for
the nine months ended September 30, 1995, compared with a
decrease of $1,682,000 for the same period in 1994. The primary
source of cash for both periods was internal operations which
generated $13.1 million in 1995 and 1994. The primary use of cash
in the first six months of 1994 was the acquisition of Amana
Colonies Telephone Company which required $6.5 million. Additions
to Property, Plant and Equipment required $3.7 million in 1995
and $4.6 million in 1994. Dividends paid for the first nine
months were higher (15.3%) in 1995 than 1994 reflecting a $0.10
per share increase.
2. WORKING CAPITAL - Current Assets exceeded Current Liabilities by
$16.9 million as of September 30, 1995, compared to a working
capital surplus of $11.2 million as of December 31, 1994. The
primary source of working capital was internal operations.
3. USES OF CAPITAL - Additions to Property, Plant and Equipment
constituted the Registrant's largest investing activity, using
$16.6 million for the three years ended December 31, 1994. The
$3.7 million of internal working capital used during the first
nine months of 1995 was indicative of the continuing need for
funding in the Registrant's capital intensive industry.
4. LONG-TERM DEBT - The Registrant's Long-Term Debt as of September
30, 1995, was $1,145,000. In addition, Current Maturities of
Long-Term Debt were $201,000. The general purpose of this debt
was the financing of telephone property, plant and equipment of
Mid-Communications, Inc. This debt has final maturities at
various times in 2003 through 2007 with interim sinking fund
payments. Currently debt service is being funded out of
operations. The existing Long-Term Debt of the Registrant is
primarily Rural Utilities Service obligations which carry a 2%
interest rate.
The Registrant has entered into a debt financing agreement
(Computoservice Line of Credit) to provide financing for building
improvements for offices and computer facilities for its Computer
Segment. Additionally, the Registrant has entered into another
debt financing agreement (Hickory Tech Line of Credit) for
general corporate purposes including interim financing for
acquisitions. As of September 30, 1995, there were no outstanding
advances against either line of credit.
5. CAPITAL FROM OPERATIONS - Management believes the Registrant will
be able to generate sufficient working capital internally from
operations to meet its immediate operating needs and sustain its
historical dividend levels. The Registrant has completed five
acquisitions in the previous five years which were all funded out
of existing cash balances. Growth plans and acquisitions will
require additional debt financing in the future. Discussions have
been conducted with several sources for long-term debt financing,
but no commitments have been made.
HICKORY TECH CORPORATION
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Default Upon Senior Securities,
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports of Form 8-K.
None.
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 hereto duly authorized.
Dated: November 10, 1995 HICKORY TECH CORPORATION
/s/ Robert D. Alton, Jr.
Robert D. Alton, Jr.,
Chief Executive Officer
/s/ David A. Christensen
David A. Christensen,
Chief Financial Officer
