Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information

Segment Information

13. Segment Information

The Company operates in two reportable segments of telecommunications and data center colocation.  This conclusion is based on how resources are allocated and performance is assessed by the Chief Executive Officer, the Company’s chief operating decision maker.  The telecommunications segment provides local voice services, video, high-speed internet and long distance voice services.  In addition, the segment provides network access which includes data transport.  Various related telephony services are provided including equipment and managed services.  The data center colocation segment provides physical colocation, virtual colocation and various related telephony services.

The following table provides operating financial information for the Company’s reportable segments for the three months ended March 31, 2016 and 2015 (dollars in thousands):

	Tele-		Data Center		Intersegment
	communications		Colocation		Elimination		Total
Three Months Ended March 31, 2016
Operating revenues	$	96,185	$	3,057	$	(448)	$	98,794
Depreciation and amortization		21,426		524		—		21,950
Operating income (loss)		4,611		(111)		—		4,500
Capital expenditures		24,412		176		—		24,588
Three Months Ended March 31, 2015
Operating revenues	$	94,836	$	2,597	$	(319)	$	97,114
Depreciation and amortization		20,728		552		—		21,280
Operating income (loss)		6,246		(327)		—		5,919
Capital expenditures		22,752		479		—		23,231

Intersegment revenue represents primarily network access services provided by the telecommunications segment for data center colocation.  For the three months ended March 31, 2016 and 2015, total operating income above reconciles to the condensed consolidated statement of income as follows (dollars in thousands):

	Three Months Ended
	March 31,
	2016		2015
Operating income	$	4,500	$	5,919
Corporate other expense		(4,240)		(4,330)
Income before income tax provision	$	260	$	1,589

The following table provides information on the Company’s revenue, net of intersegment eliminations, by product group (dollars in thousands):

	Three Months Ended
	March 31,
	2016		2015
Local voice and other retail services	$	81,975	$	80,184
Wholesale carrier data services		13,762		14,333
Data center colocation		3,057		2,597
	$	98,794	$	97,114