Quarterly Segment Financial Summary

9 Months Ended

Sep. 30, 2012

Quarterly Segment Financial Summary [Abstract]

Quarterly Segment Financial Summary

Note 15.  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 commercial 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 commercial 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 nine months ended September 30, 2012 and 2011 is as follows:

(Dollars in thousands)								Corporate and
Three Months Ended September 30, 2012	Fiber and Data		Equipment			Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	15,528	$	15,001		$	15,284	$	-		$	45,813
Intersegment revenue		215		-			465		(680	)		-
Total operating revenue		15,743		15,001			15,749		(680	)		45,813
Depreciation and amortization		2,638		71			4,146		14			6,869
Operating income (loss)		2,445		890			1,377		(155	)		4,557
Interest expense		2		-			9		1,614			1,625
Income tax provision (benefit)		990		360			554		(710	)		1,194
Net Income (loss)		1,454		529			816		(1,058	)		1,741
Total assets		109,869		21,213			120,056		17,613			268,750
Property, plant and equipment, net		88,157		1,347			87,237		62			176,803
Additions to property, plant and equipment		6,390		(15	)		2,979		-			9,354
								Corporate and
Three Months Ended September 30, 2011	Fiber and Data		Equipment			Telecom		Eliminations			Consolidated
								(Restated)			(Restated)
Revenue from unaffiliated customers	$	11,368	$	16,416		$	17,460	$	-		$	45,244
Intersegment revenue		219		-			404		(623	)		-
Total operating revenue		11,587		16,416			17,864		(623	)		45,244
Depreciation and amortization		1,597		74			4,101		22			5,794
Operating income (loss)		1,926		1,250			3,000		166			6,342
Interest expense		-		-			13		2,867			2,880
Income tax provision (benefit)		780		506			1,216		(1,147	)		1,355
Net Income (loss)		1,146		744			1,787		(1,544	)		2,133
Total assets		73,858		27,083			127,163		18,822			246,926
Property, plant and equipment, net		57,128		1,332			93,896		82			152,438
Additions to property, plant and equipment		2,988		213			2,440		-			5,641

(Dollars in thousands)							Corporate and
Nine Months Ended September 30, 2012	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	43,924	$	45,286	$	47,404	$	-		$	136,614
Intersegment revenue		601		-		1,319		(1,920	)		-
Total operating revenue		44,525		45,286		48,723		(1,920	)		136,614
Depreciation and amortization		7,155		213		12,364		63			19,795
Operating income (loss)		7,074		2,109		5,557		(444	)		14,296
Interest expense		2		-		31		4,602			4,635
Income tax provision (benefit)		2,865		854		2,246		(2,040	)		3,925
Net Income (loss)		4,208		1,254		3,301		(2,990	)		5,773
Total assets		109,869		21,213		120,056		17,613			268,750
Property, plant and equipment, net		88,157		1,347		87,237		62			176,803
Additions to property, plant and equipment		11,958		175		6,777		-			18,910
							Corporate and
Nine Months Ended September 30, 2011	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
							(Restated)			(Restated)
Revenue from unaffiliated customers	$	33,296	$	38,586	$	52,092	$	-		$	123,974
Intersegment revenue		566		-		1,220		(1,786	)		-
Total operating revenue		33,862		38,586		53,312		(1,786	)		123,974
Depreciation and amortization		4,739		213		12,137		66			17,155
Operating income (loss)		5,333		2,454		8,600		(377	)		16,010
Interest expense		-		1		46		5,152			5,199
Income tax provision (benefit)		2,161		995		3,473		(2,595	)		4,034
Net Income (loss)		3,173		1,458		5,102		(2,906	)		6,827
Total assets		73,858		27,083		127,163		18,822			246,926
Property, plant and equipment, net		57,128		1,332		93,896		82			152,438
Additions to property, plant and equipment		7,211		306		6,615		-			14,132