<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000766561
<NAME> HICKORY TECH CORPORATION
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 7,695
<SECURITIES> 5,849
<RECEIVABLES> 7,418
<ALLOWANCES> 124
<INVENTORY> 3,141
<CURRENT-ASSETS> 22,362
<PP&E> 77,509
<DEPRECIATION> 42,290
<TOTAL-ASSETS> 71,235
<CURRENT-LIABILITIES> 7,731
<BONDS> 0
<COMMON> 2,014
0
0
<OTHER-SE> 53,004
<TOTAL-LIABILITY-AND-EQUITY> 71,235
<SALES> 10,801
<TOTAL-REVENUES> 30,220
<CGS> 6,357
<TOTAL-COSTS> 22,691
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 46
<INCOME-PRETAX> 7,887
<INCOME-TAX> 3,161
<INCOME-CONTINUING> 4,726
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,726
<EPS-PRIMARY> .92
<EPS-DILUTED> .92
</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 June 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: 5,124,656 shares of no par common
stock as of June 30, 1995.
<TABLE>
HICKORY TECH CORPORATION
JUNE 30, 1995
PART I. FINANCIAL INFORMATION
ITEM 1.
Financial Statements.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
<CAPTION>
In Thousands For Quarter Ended For 6 Months Ended
6-30-95 6-30-94 6-30-95 6-30-94
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES
Telephone $7,627 $6,669 $15,171 $13,156
Computer 2,424 1,867 4,248 3,827
Equipment Sales 3,213 3,841 6,810 7,611
Telecommunications Product
Development 2,309 2,212 3,991 4,090
-------- -------- -------- --------
TOTAL OPERATING REVENUES 15,573 14,589 30,220 28,684
COSTS AND EXPENSES
Cost of Sales 3,297 3,711 6,357 7,106
Operating Expenses 6,480 5,734 12,619 11,509
Depreciation 1,349 1,283 2,699 2,618
Amortization of Intangibles 533 330 1,016 627
-------- -------- -------- --------
TOTAL COSTS AND EXPENSES 11,659 11,058 22,691 21,860
-------- -------- -------- --------
OPERATING INCOME 3,914 3,531 7,529 6,824
OTHER INCOME 268 81 404 236
INTEREST EXPENSE (16) (27) (46) (48)
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 4,166 3,585 7,887 7,012
INCOME TAXES 1,661 1,330 3,161 2,636
-------- -------- -------- --------
CONSOLIDATED NET INCOME $2,505 $2,255 $4,726 $4,376
======== ======== ======== ========
EARNINGS PER SHARE $0.49 $0.44 $0.92 $0.85
DIVIDENDS PER SHARE $0.25 $0.215 $0.50 $0.43
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
HICKORY TECH CORPORATION
JUNE 30, 1995
CONSOLIDATED BALANCE SHEET (UNAUDITED)
<CAPTION>
In Thousands 6-30-95 12-31-94
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $7,695 $5,065
Temporary Cash Investments 3,113 1,887
Receivables, Net of Allowance 7,294 7,258
Taxes Receivable 191 0
Inventories 3,141 2,948
Deferred Tax Benefit and Other 928 1,029
-------- --------
TOTAL CURRENT ASSETS 22,362 18,187
INVESTMENTS 2,736 2,648
PROPERTY, PLANT & EQUIPMENT:
Telecommunications Plant 66,935 63,645
Other Property and Equipment 10,574 10,222
-------- --------
TOTAL 77,509 73,867
Less Accumulated Depreciation 42,290 38,236
-------- --------
NET PROPERTY, PLANT AND EQUIPMENT 35,219 35,631
OTHER ASSETS:
Intangible Assets 10,180 10,649
Note Receivable 325 252
Miscellaneous 413 413
-------- --------
TOTAL OTHER ASSETS 10,918 11,314
-------- --------
TOTAL ASSETS $71,235 $67,780
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $4,668 $4,275
Notes Payable 0 763
Accrued Taxes 0 404
Advanced Billings & Deposits 2,855 1,295
Current Maturities of Long-Term Debt 208 219
-------- --------
TOTAL CURRENT LIABILITIES 7,731 6,956
LONG-TERM DEBT, NET OF CURRENT MATURITIES 1,195 1,295
DEFERRED CREDITS:
Investment Tax Credits 287 337
Income Taxes 4,358 4,395
Other 2,646 1,955
-------- --------
TOTAL DEFERRED CREDITS 7,291 6,687
SHAREHOLDERS' EQUITY:
Common Stock 2,014 2,002
Reinvested Earnings 53,004 50,840
-------- --------
TOTAL SHAREHOLDERS' EQUITY 55,018 52,842
-------- --------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $71,235 $67,780
======== ========
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<TABLE>
HICKORY TECH CORPORATION
JUNE 30, 1995
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<CAPTION>
In Thousands 6-30-95 6-30-94
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $4,726 $4,376
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Depreciation and Amortization 3,715 3,245
Estimated Loss Resulting from
Disposition of Assets 387 0
(Increase) Decrease in:
Receivables (36) (209)
Taxes Receivable (191) 0
Inventory and Other (92) 787
Increase (Decrease) in:
Accounts Payable 60 141
Accrued Taxes (404) 22
Advance Billings & Deposits 1,560 25
Deferred Investments Tax Credits (50) (61)
Deferred Income Taxes (37) (263)
Other 691 92
-------- --------
Net Cash Provided by Operating Activities 10,329 8,155
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant & Equipment (2,287) (3,777)
Additions to Intangible Assets (601) (876)
Issuance of Note Receivable (73) 0
Increase in Investments (88) (313)
(Increase) Decrease in Temporary Cash Investments (1,226) 654
Purchase of Intangible Assets 0 (200)
Acquisition 0 (6,300)
Other 0 21
-------- --------
Net Cash Used in Investing Activities (4,275) (10,791)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Long-Term Debt 0 387
Repayments of Debt (874) (170)
Proceeds from Issuance of Common Stock 12 22
Acquisition of Common Stock 0 (612)
Dividends Paid (2,562) (2,206)
-------- --------
Net Cash Used in Financing Activities (3,424) (2,579)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,630 (5,215)
CASH AND CASH EQUIVALENTS At Beginning of Year 5,065 8,478
-------- --------
CASH AND CASH EQUIVALENTS At End of Period $7,695 $3,263
======== ========
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
HICKORY TECH CORPORATION
JUNE 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 to a fair statement of the
results for the interim periods reported on.
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 as well as in Santa Ana, California. 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 devices. 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 June 30, 1995, the earnings per common share
calculation was based on 5,124,656 shares. For the six months ended
June 30, 1995, the calculation was based on 5,124,475 shares. For the
quarter ended June 30, 1994, the earnings per common share calculation
was based on 5,128,933 shares. For the six months ended June 30, 1994,
the calculation was based on 5,131,299 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 and second 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
NOTE 3. INVENTORIES
Inventories are stated at the lower of average cost or market and
consist of the following:
(in Thousands) 6-30-95 12-31-94
Finished Goods $ 371 $ 304
Work in Process 152 433
Materials and Supplies 2,618 2,211
--------- ---------
Total $ 3,141 $ 2,948
========= =========
NOTE 4 COMMON STOCK
The Registrant's common stock has no par value. There are 25,000,000
shares authorized. There were 5,124,656 shares outstanding on June 30,
1995, and 5,124,291 shares outstanding on December 31, 1994.
Pursuant to the Retainer Stock Plan for Directors, 365 shares of
common stock were issued in lieu of retainers to five members of the
Registrant's Board of Directors on March 31, 1995. These shares were
issued at 100% of fair market value on the date of issue.
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. 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 the
Registrant, 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 fees at industry standard rates for management services
supplied to the Iowa and Minnesota Exchanges to be purchased by
Tritech. Management services provided to exchanges located in Nebraska
will be contracted through an outside vendor. The Registrant will also
provide billing services for the exchanges purchased by Alpine and
Tritech. The purchase must be approved by the Federal Communication
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.
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
JUNE 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION.
Consolidated Net Income for the quarter ended June 30, 1995, was 11.1%
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
Operating Revenues were 6.7% higher for the quarter ended June 30,
1995, than for the quarter ended June 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
A. Material changes in results of operations:
1. TELEPHONE - Operating Revenues for the second quarter of 1995
were $958,000 or 14.4% higher than the same period in 1994. For
the six months ended June 30, 1995, Operating Revenues were
$2,015,000 or 15.3% higher than the same period in 1994.
$1,608,000 of the year to date increase resulted from local
service and network access. This was primarily due to increased
local rates, growth in the number of access lines and higher
message volumes per access line. Part of the increase in
Operating Revenues is the result of having six months of
operations at Amana Colonies Telephone Company (ACTC) in 1995
compared to three 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
$132,000 of revenues during the first six months of 1995.
2. COMPUTER - Operating Revenues for the second quarter of 1995 were
$557,000 or 29.8% higher than the same period in 1994. For the
six months ended June 30, 1995, Operating Revenues were $421,000
or 11.0% higher than the six months ended June 30, 1994. While
this segment has experienced a reduction in volume from existing
and expired contracts for certain services, a new contract with
MCImetro was entered into in March, 1995, which generated
$872,000 of revenue during the second quarter of 1995. This new
contract provides for services to MCImetro for the next three
years.
3. EQUIPMENT SALES - Operating Revenues for this segment were down
$628,000 or 16.3% for the second quarter of 1995 when compared to
the second quarter of 1994. For the six months ended June 30,
1995, Operating Revenues were $801,000 or 10.5% lower than the
same period in 1994. Operating Revenues for the California
division of Collins Communications Systems Co. were $830,000
lower for the six months ended June 30, 1995, than for the same
period in 1994. The Registrant has decided to discontinue
operations at its California division and dispose of the assets
of the division. The anticipated loss of $387,000 resulting from
the closing of the division has been reflected in Operating
Expenses in the quarter ended June 30, 1995. The Registrant is
currently in negotiations with a potential buyer of those assets.
It is anticipated that this segment will recover during the last
half of 1995 from a slow first half in terms of revenues and
profits. The St. Paul division of Collins Communications Systems
Co. has recently entered into a $1.6 million contract for the
installation of a new telephone system to be completed in the
last quarter of 1995.
4. TELECOMMUNICATIONS PRODUCT DEVELOPMENT - Operating Revenues for
the quarter ended June 30, 1995 were $97,000 or 4.4% higher than
the second quarter of 1994. Operating Revenues for the six months
ended June 30, 1995 were $99,000 or 2.4% lower than the same
period in 1994. Royalty revenues were $308,000 lower for the six
months ended June 30, 1995, than for the same period in 1994.
Royalty revenues are generated from a right to manufacture
contract which was entered into in 1994. While 1995 royalty
revenues were approximately at the anticipated level, they were
well below last year's levels. Standard product revenue is
$802,000 ahead of last year's levels on a year to date basis. The
Registrant believes that this increase can primarily be
attributed to the implementation of distribution agreements.
Conversely, revenue from sales to Other Equipment Manufacturers
(OEM) was $852,000 lower for the six months ended June 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.
5. COST OF SALES - Consolidated Cost of Sales was $414,000 or 11.2%
lower for the quarter ended June 30, 1995, than the same period
in 1994. For the six months ended June 30, 1995, Cost of Sales
was $749,000 or 10.5% 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 six months ended June 30,
1995 as described in previous paragraphs. In terms of percentage
of Operating Revenues from these two segments, Cost of Sales was
57% for the six months ended June 30, 1995, compared to 59% for
the same period in 1994. This 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
June 30, 1995, were $746,000 or 13.0% higher than the same period
in 1994. For the six months ended June 30, 1995, Operating
Expenses were $1,110,000 or 9.6% higher than in 1994. The
Registrant recorded an estimated loss of $387,000 in the second
quarter of 1995 on the anticipated closing and disposition of
assets of the California division of Collins Communications
Systems Co. Without the effect of the estimated loss the increase
in Operating Expenses over 1994 would have been 6.3% for both the
second quarter and the six months ended June 30, 1995.
7. AMORTIZATION OF INTANGIBLES - Amortization for the quarter ended
June 30, 1995, was $203,000 higher than for the quarter ended
June 30, 1994. For the six months ended June 30, 1995,
Amortization was $389,000 higher than for the same period in
1994. Amortization of intangibles resulting from the acquisition
of Amana Colonies Telephone Company in April, 1994, represented
$30,000 of the year to date increase. Amortization of the license
fee for the new DBS service represented $58,000 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 is $146,000.
B. Material changes in financial condition:
1. CASH FLOWS - Cash and Cash Equivalents increased $2,630,000 for
the six months ended June 30, 1995, compared with a decrease of
$5,215,000 for the same period in 1994. The primary source of
cash for both periods was internal operations which generated
$10.3 million in 1995 and $8.2 million in 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 $2.3 million
in 1995 and $3.8 million in 1994. Dividends paid for the first
six months were higher (16.1%) in 1995 than 1994 reflecting a
$0.07 per share increase.
2. WORKING CAPITAL - Current Assets exceeded Current Liabilities by
$14.6 million dollars as of June 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
$2.3 million of internal working capital used during the first
six 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 June 30,
1995, was $1,195,000. In addition Current Maturities of Long-Term
Debt were $208,000. 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. Plans
have not been completed for the long-term funding of the debts
maturing in 2003 through 2007. Additionally, 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. This
new debt requires interest only payments for one year at which
time it will be converted to installment debt. As of June 30,
1995, there are no outstanding advances against this 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 of long-term debt financing,
but no commitments have been made. Should the Registrant have a
need to secure senior debt financing as a result of pursuing
corporate acquisitions, no difficulty is anticipated.
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.
a. The annual shareholders' meeting was held on April 10, 1995.
b. Three directors were elected to serve three year terms. The names
of the directors elected at the annual meeting and the applicable
votes were as follows:
With- Broker
Director For Against held Nonvotes
-------- --------- -------- ----- --------
James H. Holdrege 4,027,727 106,312 None None
Lyle G. Jacobson 4,051,845 82,194 None None
Starr J. Kirklin 4,121,877 12,162 None None
The other directors of the Registrant are as follows:
Robert D. Alton, Jr. Lyle T. Bosacker
Robert K. Else R. Wynn Kearney, Jr., M.D.
Brett M. Taylor, Jr.
c. Olsen, Thielen & Co., Ltd. was also confirmed as the auditors for
the Registrant for 1995 at the annual meeting. The votes
regarding the selection of the auditors were as follows:
For Against Abstain Broker Nonvotes
4,114,652 9,763 9,624 None
Item 5. Other Information.
None.
Item 6. Exhibits and Reports of Form 8-K.
b. Reports on Form 8-K. During the quarterly period ended June 30,
1995, the Registrant filed a Form 8-K dated June 23, 1995. Item 5
(Other Events) was reported on the Form 8-K. The Form 8-K
involved the announcement of the Registrant's participation in
purchase agreements dated June 15, 1995, with U S West
Communications, Inc. to purchase assets of eighty-two rural
telephone exchanges in Iowa, Minnesota and Nebraska.
As a result of the purchase the Registrant will acquire the
assets of eight exchanges in Minnesota for a purchase price of
$25,900,000 and six exchanges in Iowa for a purchase price of
$22,100,000.
The purchase of the exchanges must be approved by the Federal
Communications Commission and the Public Utility Commissions of
Iowa, Minnesota and Nebraska. It is anticipated that the
approvals for the purchase may not occur until the first or
second quarter of 1996.
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: August 11, 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
