Quarterly Segment Financial Summary

6 Months Ended

Jun. 30, 2012

Quarterly Segment Financial Summary [Abstract]

Quarterly Segment Financial Summary

Note 14.  Quarterly Segment Financial Summary

Our operations are conducted in three segments: (i) Fiber and Data, (ii) Equipment and (iii) Telecom.

Our Fiber and Data Segment serves wholesale, enterprise and small-to-medium business customers with data and voice communications services supported by our extensive statewide fiber network and community access rings. With our communication expertise, we are able to provide standard and customized network solutions which can be extended beyond our network to provide end-to-end national connectivity. The Fiber and Data Segment also includes revenue from our SingleLink unified communication services and voice, data and Internet services sold to SMB business customers in several metropolitan markets.

Our Equipment Segment provides equipment solutions and support for a broad spectrum of business customers. Our equipment solutions team plans, designs and implements networks utilizing emerging technological advancements including TelePresence Video, Unified Communications and data center solutions. We provide a complete array of products and services to support the Cisco equipment sold to business customers including professional services, maintenance, total care support and security. Professional services include network assessments, planning, design, implementation and training. Our total care support team provides a single-point-of-contact for the support of applications, systems and infrastructure. We also offer security solutions combining leading network security products with our experience and expertise in integrated communications systems.

Our Telecom Segment provides bundled residential and business services including high-speed Internet, broadband services, digital TV, local voice and long distance services in our legacy telecom service area. Telecom is comprised of two markets. The first includes an incumbent local exchange carrier ("ILEC") operating in 13 south central Minnesota communities and 13 rural northwest Iowa communities. The second market is a competitive local exchange carrier ("CLEC") operation. We own our network in both the ILEC and CLEC communities. The Telecom Segment, through National Independent Billing, Inc., also provides data processing and related billing services to HickoryTech and external communication providers including wireline, wireless and entertainment providers.

Our presentation of segments has changed from our 10-Q filings prior to 2012 to better represent the organization as our chief operating decision-makers base their decisions. In 2011, as a result of changes to our organizational and management structure, as well as the formation of a separate entity to isolate our equipment distribution operation, we were able to more clearly and completely separate our Business Sector into two reportable segments for operating decision-making, giving us a total of three reporting segments overall. The segment information below has been reclassified to reflect these changes.

Segment information for the three and six months ended June 30, 2012 and 2011 is as follows:

(Dollars in thousands)							Corporate and
Three Months Ended June 30, 2012	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	15,177	$	12,864	$	15,816	$	-		$	43,857
Intersegment revenue		193		-		444		(637	)		-
Total operating revenue		15,370		12,864		16,260		(637	)		43,857
Depreciation and amortization		2,551		71		4,085		25			6,732
Operating income (loss)		2,284		399		1,993		(189	)		4,487
Interest expense		-		-		9		1,473			1,482
Income tax provision (benefit)		925		160		809		(684	)		1,210
Net Income (loss)		1,359		239		1,186		(975	)		1,809
Total assets		103,611		14,753		121,064		25,158			264,586
Property, plant and equipment, net		84,216		1,433		88,424		77			174,150
Additions to property, plant and equipment		3,603		117		2,203		-			5,923

							Corporate and
Three Months Ended June 30, 2011	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	11,067	$	11,746	$	17,295	$	-		$	40,108
Intersegment revenue		186		-		404		(590	)		-
Total operating revenue		11,253		11,746		17,699		(590	)		40,108
Depreciation and amortization		1,556		71		4,033		22			5,682
Operating income (loss)		1,922		706		2,699		(325	)		5,002
Interest expense		-		1		15		999			1,015
Income tax provision (benefit)		778		286		1,089		(846	)		1,307
Net Income (loss)		1,144		419		1,599		(468	)		2,694
Total assets		68,819		19,615		128,060		20,730			237,224
Property, plant and equipment, net		55,881		1,209		95,301		104			152,495
Additions to property, plant and equipment		2,417		87		2,309		-			4,813
							Corporate and
Six Months Ended June 30, 2012	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	28,396	$	30,285	$	32,120	$	-		$	90,801
Intersegment revenue		386		-		854		(1,240	)		-
Total operating revenue		28,782		30,285		32,974		(1,240	)		90,801
Depreciation and amortization		4,517		142		8,218		49			12,926
Operating income (loss)		4,629		1,219		4,180		(289	)		9,739
Interest expense		-		-		22		2,824			2,846
Income tax provision (benefit)		1,875		494		1,692		(1,265	)		2,796
Net Income (loss)		2,754		725		2,485		(1,833	)		4,131
Total assets		103,611		14,753		121,064		25,158			264,586
Property, plant and equipment, net		84,216		1,433		88,424		77			174,150
Additions to property, plant and equipment		5,568		190		3,799		-			9,557
							Corporate and
Six Months Ended June 30, 2011	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	21,928	$	22,170	$	34,632	$	-		$	78,730
Intersegment revenue		347		-		816		(1,163	)		-
Total operating revenue		22,275		22,170		35,448		(1,163	)		78,730
Depreciation and amortization		3,142		139		8,036		44			11,361
Operating income (loss)		3,407		1,204		5,600		(543	)		9,668
Interest expense		-		1		33		2,049			2,083
Income tax provision (benefit)		1,381		489		2,257		(1,354	)		2,773
Net Income (loss)		2,027		714		3,315		(1,220	)		4,836
Total assets		68,819		19,615		128,060		20,730			237,224
Property, plant and equipment, net		55,881		1,209		95,301		104			152,495
Additions to property, plant and equipment		4,223		93		4,239		-			8,555