<PAGE>
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, 1996
---------------------------
- 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: 4,860,396 shares of no par common
stock as of September 30, 1996.
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
In Thousands FOR QUARTER ENDED FOR 9 MONTHS ENDED
9-30-96 9-30-95 9-30-96 9-30-95
----------------- ------------------
OPERATING REVENUES
Telephone $ 7,675 $ 7,421 $23,586 $22,592
Data Processing 2,256 2,585 7,052 6,833
Equipment Sales 5,056 4,064 12,542 10,874
Telecommunications Product Development 1,652 1,801 4,942 5,792
------- ------- ------- -------
TOTAL OPERATING REVENUES 16,639 15,871 48,122 46,091
COSTS AND EXPENSES
Cost of Sales 4,260 3,543 10,705 9,900
Operating Expenses 6,572 6,656 20,514 19,275
Depreciation 1,315 1,509 4,063 4,208
Amortization of Intangibles 310 466 1,494 1,482
------- ------- ------- -------
TOTAL COSTS AND EXPENSES 12,457 12,174 36,776 34,865
------- ------- ------- -------
OPERATING INCOME 4,182 3,697 11,346 11,226
OTHER INCOME 267 288 807 692
INTEREST EXPENSE (7) (18) (144) (64)
------- ------- ------- -------
INCOME BEFORE INCOME TAXES 4,442 3,967 12,009 11,854
INCOME TAXES 1,809 1,591 4,789 4,752
------- ------- ------- -------
CONSOLIDATED NET INCOME $ 2,633 $ 2,376 $ 7,220 $ 7,102
------- ------- ------- -------
------- ------- ------- -------
EARNINGS PER SHARE $0.54 $0.46 $1.43 $1.39
DIVIDENDS PER SHARE $0.275 $0.25 $0.825 $0.75
The accompanying notes are an integral part of the financial statements.
-1-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
CONSOLIDATED BALANCE SHEET (UNAUDITED)
In Thousands 9-30-96 12-31-95
----------- ------------
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 3,266 $ 4,517
Temporary Cash Investments 0 7,176
Receivables, Net of Allowance 10,400 9,381
Taxes Receivable 579 0
Inventories 3,178 2,846
Deferred Tax Benefit and Other 1,298 985
----------- ------------
TOTAL CURRENT ASSETS 18,721 24,905
INVESTMENTS 2,940 2,714
PROPERTY, PLANT & EQUIPMENT:
Telecommunications Plant 73,148 69,162
Other Property and Equipment 10,705 11,433
----------- ------------
TOTAL 83,853 80,595
Less Accumulated Depreciation 48,056 44,507
----------- ------------
NET PROPERTY, PLANT AND EQUIPMENT 35,797 36,088
OTHER ASSETS:
Intangible Assets 9,034 9,457
Note Receivable 220 340
Miscellaneous 413 433
----------- ------------
TOTAL OTHER ASSETS 9,667 10,230
----------- ------------
TOTAL ASSETS $67,125 $73,937
----------- ------------
----------- ------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 4,593 $ 5,568
Accrued Taxes 0 459
Advanced Billings & Deposits 1,698 1,679
Current Maturities of Long-Term Debt 210 206
----------- ------------
TOTAL CURRENT LIABILITIES 6,501 7,912
LONG-TERM DEBT, NET OF CURRENT MATURITIES 930 1,087
DEFERRED CREDITS:
Investment Tax Credits 173 233
Income Taxes 3,855 3,735
Compensation Benefits and Other 2,955 3,063
----------- ------------
TOTAL DEFERRED CREDITS 6,983 7,031
SHAREHOLDERS' EQUITY:
Common Stock 486 2,294
Additional Paid-In Capital 1,794 0
Reinvested Earnings 50,431 55,613
----------- ------------
TOTAL SHAREHOLDERS' EQUITY 52,711 57,907
----------- ------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $67,125 $73,937
----------- ------------
----------- ------------
The accompanying notes are an integral part of the financial statements.
-2-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR NINE MONTHS ENDED
In Thousands 9-30-96 9-30-95
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 7,220 $ 7,102
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Depreciation and Amortization 5,721 5,690
Estimated Loss Resulting from Disposition of Assets 0 415
Equity in Subsidiary Net Income (419) (384)
Changes in Assets and Liabilities:
Increase in:
Receivables (1,019) (1,909)
Taxes Receivable (579) (311)
Inventories (332) (143)
Increase (Decrease) in:
Accounts Payable (975) 1,076
Accrued Taxes (459) (404)
Advance Billings & Deposits 19 988
Deferred Investments Tax Credits (60) (77)
Deferred Income Taxes 120 (56)
Other (401) 683
----------- -----------
Net Cash Provided by Operating Activities 8,836 12,670
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant & Equipment (3,936) (3,670)
Additions to Intangible Assets (1,071) (641)
(Increase) Decrease in Note Receivable 120 (88)
Increase in Investments 193 270
(Increase) Decrease in Temporary Cash Investments 7,176 (55)
Proceeds from Sale of Assets 0 155
----------- -----------
Net Cash Provided by (Used in) Investing Activities 2,482 (4,029)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of Debt (153) (931)
Proceeds from Issuance of Common Stock 549 267
Acquisition of Common Stock (8,810) 0
Dividends Paid (4,155) (3,844)
----------- -----------
Net Cash Used in Financing Activities (12,569) (4,508)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,251) 4,133
CASH AND CASH EQUIVALENTS At Beginning of Year 4,517 5,065
----------- -----------
CASH AND CASH EQUIVALENTS At End of Period $ 3,266 $ 9,198
----------- -----------
----------- -----------
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
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 present a fair statement of
the results for the interim periods being 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 wholly-owned 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 has
ownership interests in Midwest Wireless, L.L.C., a cellular company
in southern Minnesota. These four subsidiaries comprise the
Registrant's Telephone Segment.
COMPUTOSERVICE, INC. (CSI) provides data processing for the
Telephone Segment as well as other unrelated telephone companies.
It also provides services to interexchange carriers and enhanced
service providers throughout the United States through its
subsidiary, National Independent Billing, Inc. The operations of
Computoservice, Inc. and National Independent Billing, Inc.
constitute the Registrant's Data Processing Segment.
COLLINS COMMUNICATIONS SYSTEMS CO. (Collins) 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 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. (DTI) designs, assembles and distributes
unique business telephone system components. The operations
comprise the Registrant's Telecommunications Product Development
Segment.
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.
-4-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
PART 1. FINANCIAL INFORMATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. (CONTINUED)
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, 1996, the earnings per
common share calculation was based on 4,893,604 shares. For the
nine months ended September 30, 1996, the calculation was based on
5,032,022 shares. 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.
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 quarters of 1996
and 1995 were as follows:
SHARES OUTSTANDING ON RECORD DATE 1996 1995
--------------------------------- ---- ----
1st Quarter (Feb. 15) 5,121,873 5,124,291
2nd Quarter (May 15) 5,098,119 5,124,656
3rd Quarter (Aug. 15) 4,890,679 5,125,041
NOTE 3. INVENTORIES
Inventories are stated at the lower of average cost or market and
consist of the following:
(In Thousands) 9-30-96 12-31-95
------- --------
Finished Goods $ 311 $ 344
Work in Process 77 142
Materials and Supplies 2,790 2,360
------- --------
Total $ 3,178 $ 2,846
------- --------
------- --------
NOTE 4. COMMON STOCK
The Registrant's common stock has no par value. There are
25,000,000 shares authorized. There were 4,860,396 shares
outstanding on September 30, 1996, and 5,134,021 shares outstanding
on December 31, 1995.
Pursuant to the Employee Stock Purchase Plan, 11,094 shares of
common stock were issued on September 1, 1996 to the employees who
participated in the plan.
Pursuant to the Retainer Stock Plan for Directors, 455 shares of
common stock were issued in lieu of cash retainers to five members
of the Registrant's Board of Directors on March 31, 1996, 356
shares were issued in lieu of cash retainers to four members of the
Board of Directors on June 30, 1996 and 392 shares were issued in
lieu of cash retainers to four members of the Board of Directors on
September 30, 1996. Pursuant to a long-term incentive award plan
for officers, 3,152 shares of common stock were issued to officers
of the Registrant during the first quarter of 1996. Shares issued
to directors and officers were issued at 100% of fair market value
on the date of issue.
-5-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
PART 1. FINANCIAL INFORMATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. (CONTINUED)
During the nine months ended September 30, 1996, the Registrant
retired 295,831 shares of its common stock at a cost of $8,810,000.
In April, 1996, the Registrant announced a program to repurchase
up to 500,000 shares of its outstanding stock. This program was
reported on Form 8-K dated April 8, 1996.
Other common stock activity includes 6,757 shares issued in April
1996 to minority shareholders of Digital Techniques, Inc., the
Registrant's subsidiary, to complete a merger.
Effective April 1, 1996, the Registrant established a stated value
of $0.10 per share for its common stock. Prior to this change, the
Registrant's common stock had no stated value. On April 1, 1996,
the accounting value of the Registrant's common stock of $1,941,000
was reclassified to $512,000 as common stock and $1,429,000 as
Additional Paid-In Capital. This change was implemented due to the
Registrant's activities in repurchasing its common stock.
NOTE 5. CORPORATE DEVELOPMENT
The Registrant has entered into an agreement to purchase the assets
of eleven rural telephone exchanges in the State of Iowa from US
West Communications, Inc. ("US West") for $35,271,000. The eleven
exchanges contain approximately 12,200 access lines. The
acquisition will be structured as a purchase of telephone assets
from US West and must be approved by the Public Utilities Boards of
Iowa, South Dakota, Minnesota and the Federal Communications
Commission. The approvals at the state levels have been obtained
and the Federal Communications Commission approval is in process.
It is anticipated that all the approvals for the purchase of the
changes should be completed in the first quarter of 1997.
The Registrant is anticipating utilizing new long-term debt
instruments to fund the majority of its $35,271,000 acquisition
price for the US West property. Negotiations are presently taking
place to secure such funding. No difficulty is anticipated in
obtaining this financing.
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, 1995 Form 10-K.
-6-
<PAGE>
HICKORY TECH CORPORATION
SEPTEMBER 30, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION.
Consolidated Net Income for the quarter ended September 30, 1996, was
10.8% higher than the same period in 1995, as illustrated by the
following table:
NET INCOME (thousands) 1996 1995 1994 1993
---- ---- ---- ----
1st Quarter $2,416 $2,221 $2,121 $2,233
2nd Quarter 2,171 2,505 2,255 1,976
3rd Quarter 2,633 2,376 2,223 1,832
Operating Revenues were 4.8% higher for the quarter ended
September 30, 1996, than for the quarter ended September 30, 1995, as
illustrated by the following table:
OPERATING REVENUES (thousands) 1996 1995 1994 1993
---- ---- ---- ----
1st Quarter $15,541 $14,647 $14,095 $13,309
2nd Quarter 15,942 15,573 14,589 12,762
3rd Quarter 16,639 15,871 14,604 12,628
A. Material changes in results of operations:
1. TELEPHONE - Operating Revenues for the third quarter of 1996 were
$254,000 or 3.4% higher than the same period in 1995. For the
nine months ended September 30, 1996, Operating Revenues were
$994,000 or 4.4% higher than the same period in 1995. Access
line growth was the primary contributor to the revenue growth,
providing access revenue, as well as additional minutes of use
revenue.
2. DATA PROCESSING - Operating Revenues for the third quarter of
1996 were $329,000 or 12.7% lower than the same period in 1995.
For the nine months ended September 30, 1996, Operating Revenues
were $219,000 or 3.2% higher than the nine months ended
September 30, 1995. The decline in revenue for the third quarter
of 1996 was due to the non-renewal of a data processing contract
with a large long distance company, reduced contract programming
services and a decline in software sales. Data Processing
Operating Revenues for 1996 have increased because of the
initiation of a business relationship with another large
interexchange carrier.
3. EQUIPMENT SALES - Operating Revenues for this segment were
$992,000 or 24.4% higher for the third quarter of 1996 when
compared to the third quarter of 1995. For the nine months ended
September 30, 1996, Operating Revenues were $1,668,000 or 15.3%
higher than the same period in 1995. The Registrant sold the
assets of its California division in 1995. Revenues from the
California division for the third quarter of 1995 were $77,000
and for the first nine months of 1995 were $693,000. Without
consideration of the 1995 Revenue from the California division,
Operating Revenues for this segment would have increased 26.8%
for the quarter ended September 30, 1996, and 23.2% for the nine
months ended September 30, 1996, when compared to the same period
in 1995.
-7-
<PAGE>
ITEM 2. CONTINUED
Revenue for the third quarter of 1996 for the St. Paul division
was enhanced by a $1 million contract with Anoka-Hennepin School
District. This contract was signed late in 1995. The St. Paul
division has also recently entered into a $2.1 million contract
to provide enhanced digital equipment for a large financial
advising company, as well as several contracts of less than
$1 million each with other new customers.
4. TELECOMMUNICATIONS PRODUCT DEVELOPMENT - Operating Revenues for
the quarter ended September 30, 1996 were $149,000 or 8.3% lower
than the third quarter of 1995. Operating Revenues for the nine
months ended September 30, 1996 were $850,000 or 14.7% lower than
the same period in 1995. Standard Product Sales for the nine
months ended September 30, 1996 were down $975,000 when compared
to the first nine months of 1995. Standard Product Sales were
affected by a large customer of this segment's E911 product. The
customer temporarily placed E911 purchases on hold while it
evaluated alternative solutions. Standard Product Sales in 1996
were also affected by the delayed deployment of the new Qstar
product. Qstar is undergoing extensive tests by RBOC's, GTE and
British Telecom, Inc. Management cannot predict when the Qstar
product will overcome all of its new product obstacles. Original
Equipment Manufacturer (OEM) sales for the nine months ended
September 30, 1996 were $260,000 higher than the same period in
1995. OEM sales are generally at a lower margin than Standard
Product Sales, but the volumes are more predictable.
5. COST OF SALES - Consolidated Cost of Sales was $717,000 or 20.2%
higher for the quarter ended September 30, 1996, than the same
period in 1995. For the nine months ended September 30, 1996,
Cost of Sales was $805,000 or 8.1% higher than for the same
period in 1995. Through the first nine months of 1996,
Operating Revenues for the two segments (Equipment Sales and
Telecommunications Product Development) which generated most
of the Cost of Sales were $818,000 or 4.9% higher than
Operating Revenues during the nine months ended September 30,
1995. In terms of percentage of Operating Revenues from these
two segments, Cost of Sales was 61.2% for the nine months
ended September 30, 1996, compared to 59.4% for the same
Period in 1995. Operating margins have been satisfactory to
management, considering the new business development for
Collins and the growth of OEM business for DTI. The volume of
sales activity in 1996 is below expectations for DTI.
6. OPERATING EXPENSES - Operating Expenses for the quarter ended
September 30, 1996, were $84,000 or 1.3% lower than the same
period in 1995. For the nine months ended September 30, 1996,
Operating Expenses were $1,239,000 or 6.4% higher than in
1995. The Telecommunications Product Development Segment
incurred increases in Engineering, Sales and Marketing
expenses totaling $749,000 for the nine months ended September
30, 1996. These increases were related to the development of
new products. 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. Without the effect of the estimated loss, the
increase in Operating Expenses over 1995 would have been 8.6%
for the nine months ended September 30, 1996. The reduction
in personnel at CSI and a freeze in the hiring of personnel at
DTI resulted in the operating expense reductions in the
quarter ended September 30, 1996.
-8-
<PAGE>
ITEM 2. CONTINUED
7. AMORTIZATION OF INTANGIBLES - Amortization for the quarter ended
September 30, 1996, was $156,000 lower than for the quarter ended
September 30, 1995. For the nine months ended September 30, 1996,
amortization was $12,000 higher than for the same period in 1995.
The Registrant accelerated the amortization of capitalized
software costs in its Data Processing Segment, which resulted in
a non-recurring expense of $573,000 in the second quarter of
1996. Without the effect of this one-time expense, amortization
for the nine months ended September 30, 1996 was $561,000 lower
than the same period in 1995. This reduction resulted from the
sale of assets and full amortization of some intangible assets
associated with acquisitions made in 1990 and 1992.
B. Material changes in financial condition:
1. CASH FLOWS - Cash and Cash Equivalents decreased $1,251,000 for
the nine months ended September 30, 1996, compared with an
increase of $4,133,000 for the same period in 1995. The
primary sources of cash in 1996 were from internal operations
and $7.2 million from use of temporary cash investments for
the Registrant's stock repurchase program. The 1995 primary
source of cash was from internal operations. The primary use
of cash in the first nine months of 1996 was the Registrant's
stock repurchase program which required $8.8 million.
Additions to Property, Plant and Equipment required $3.9
million in 1996 and $3.7 million in 1995. Dividends paid for
the first nine months were 8.1% higher in 1996 than 1995,
reflecting a $0.075 or 10% per share increase through the
first nine months of 1996.
2. WORKING CAPITAL - Current Assets exceeded Current Liabilities by
$12.2 million dollars as of September 30, 1996, compared to a
working capital surplus of $17.0 million as of December 31, 1995.
The primary source of working capital was internal operations.
The ratio of current assets to current liabilities was 2.9:1 as
of September 30, 1996.
3. USES OF CAPITAL - The largest use of internal capital during the
quarter ended September 30, 1996 was the Registrant's
repurchase of 171,920 shares of its common stock. The stock
repurchase program used $5.2 million of capital during the
quarter. Additions to Property, Plant and Equipment have
historically been the Registrant's largest investing activity,
using $17.9 million for the three years ended December 31, 1995.
During the first nine months of 1996, $3.8 million of working
capital was used to purchase fixed assets.
4. LONG-TERM DEBT - The Registrant's Long-Term Debt as of
September 30, 1996, was $930,000. In addition, Current Maturities
of Long-Term Debt were $210,000. The general purpose of this debt
was the financing of telephone property, plant and equipment of
Mid-Communications, Inc. in the 1970's. 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. No material liquidity problems are anticipated
from the long-term funding of the debts maturing in 2003 through
2007.
-9-
<PAGE>
ITEM 2. CONTINUED
The Registrant is anticipating utilizing new long-term debt
instruments of various maturities to fund the majority of the $35
million acquisition of the Iowa - US West telephone property in
1997. Negotiations are presently taking place to obtain such
funding. No difficulty is anticipated in obtaining such funding.
In July, 1996, the Registrant secured a $10,000,000 line of
credit arrangement. This line of credit will be used for general
corporate purposes and as bridge financing for future acquisition
activity. The line of credit provides for borrowing at a
variable annual rate equal to 150 basis points in excess of the
30 day LIBOR rate. Through September 30, 1996, no advances have
been made 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 six 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.
The Registrant's stock repurchase program has been funded with
internal cash to date. The Registrant's line of credit will be
available for financing future stock repurchases.
-10-
<PAGE>
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.
-11-
<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 hereto duly authorized.
Dated: OCTOBER 25, 1996 HICKORY TECH CORPORATION
By /s/ Robert D. Alton, Jr.
--------------------------------------
Robert D. Alton, Jr.,
Chief Executive Officer
By /s/ David A. Christensen
--------------------------------------
David A. Christensen,
Chief Financial Officer
-12-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,266
<SECURITIES> 2,948
<RECEIVABLES> 10,633
<ALLOWANCES> 233
<INVENTORY> 3,178
<CURRENT-ASSETS> 18,721
<PP&E> 83,853
<DEPRECIATION> 48,056
<TOTAL-ASSETS> 67,125
<CURRENT-LIABILITIES> 6,501
<BONDS> 0
0
0
<COMMON> 486
<OTHER-SE> 1,794
<TOTAL-LIABILITY-AND-EQUITY> 67,125
<SALES> 17,484
<TOTAL-REVENUES> 48,122
<CGS> 10,705
<TOTAL-COSTS> 36,776
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<INCOME-PRETAX> 12,009
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