Quarterly Segment Financial Summary

6 Months Ended

Jun. 30, 2013

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 advanced data, Internet, voice and voice over Internet Protocol ("VoIP") services. With our IP network and communication expertise, we are able to provide both custom and broad network solutions which can be extended beyond our regional network through interconnections to provide end-to-end national connectivity. The Fiber and Data Segment includes revenue from Ethernet, Private Line, Multi-Protocol Label Switching ("MPLS"), Data Center, Dedicated Internet and our hosted VoIP SingleLink services. We own, lease or utilize long-term indefeasible rights of use ("IRU") agreements for the operation of our network. Fiber and Data services are marketed throughout our core regions: northern Minnesota and the Minneapolis-Saint Paul metropolitan area, southern Minnesota, Des Moines, Iowa and Fargo, North Dakota.

Our Equipment Segment provides equipment solutions and support for a broad spectrum of business customers ranging in size from medium to large enterprise. Our equipment business plans, designs and implements networks utilizing emerging technology including: TelePresence Video, Unified Communications and Data Center solutions in collaboration with industry-leading partners. We provide a comprehensive set of services including: Advisory, Implementation, Development and Support. Our Total Care support team provides a proactive approach to monitor and support customer networks, unified communications environment and data centers as well as a single-point-of-contact for the support of applications, systems and infrastructure. Equipment sales and services are marketed primarily in our Minnesota core regions and specifically the Minneapolis-Saint Paul metropolitan area.

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 the operation of both incumbent local exchange carrier ("ILEC") and competitive local exchange carrier ("CLEC") operations. Our ILEC operations provide services in 13 south central Minnesota communities and 13 rural northwest Iowa communities. Our CLEC operation provides services in south central Minnesota and near Des Moines, Iowa. We own our network in both the ILEC and CLEC exchanges. The Telecom Segment, through National Independent Billing, Inc. ("NIBI"), also provides data processing and related billing services to HickoryTech and external communication providers including wireline, wireless and entertainment providers.

Segment information for the three and six months ended June 30, 2013 and 2012 is as follows:

(Dollars in thousands)							Corporate and
Three Months Ended June 30, 2013	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	16,779	$	15,116	$	15,246	$	-		$	47,141
Intersegment revenue		213		-		571		(784	)		-
Total operating revenue		16,992		15,116		15,817		(784	)		47,141
Asset impairment		5		-		-		-			5
Depreciation and amortization		2,922		124		4,198		8			7,252
Operating income (loss)		2,249		934		1,876		(53	)		5,006
Interest expense		-		-		6		1,125			1,131
Income tax provision (benefit)		912		378		761		(484	)		1,567
Net income (loss)		1,340		555		1,118		(692	)		2,321
Total assets		112,582		24,964		116,313		11,531			265,390
Property, plant and equipment, net		93,964		2,202		84,340		99			180,605
Additions to property, plant and equipment		2,970		403		3,131		12			6,516

(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		1,590			1,599
Income tax provision (benefit)		925		160		809		(730	)		1,164
Net income (loss)		1,359		239		1,186		(1,046	)		1,738
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

(Dollars in thousands)							Corporate and
Six Months Ended June 30, 2013	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
Revenue from unaffiliated customers	$	33,250	$	32,353	$	30,307	$	-		$	95,910
Intersegment revenue		426		-		1,144		(1,570	)		-
Total operating revenue		33,676		32,353		31,451		(1,570	)		95,910
Asset impairment		638		-		-		-			638
Depreciation and amortization		5,718		209		8,319		15			14,261
Operating income (loss)		3,887		1,755		3,481		(260	)		8,863
Interest expense		-		-		14		2,256			2,270
Income tax provision (benefit)		1,589		715		1,416		(1,059	)		2,661
Net income (loss)		2,301		1,040		2,061		(1,455	)		3,947
Total assets		112,582		24,964		116,313		11,531			265,390
Property, plant and equipment, net		93,964		2,202		84,340		99			180,605
Additions to property, plant and equipment		5,913		961		5,379		52			12,305

(Dollars in thousands)							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		2,988			3,010
Income tax provision (benefit)		1,875		494		1,692		(1,330	)		2,731
Net income (loss)		2,754		725		2,485		(1,932	)		4,032
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