Quarterly Segment Financial Summary

3 Months Ended

Mar. 31, 2014

Quarterly Segment Financial Summary [Abstract]

Quarterly Segment Financial Summary

Note 14. Quarterly Segment Financial Summary

Our operations are reported 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, Multiprotocol 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. We design and implement networks utilizing leading 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.

Segment information for the three months ended March 31, 2014 and 2013 is as follows:

(Dollars in thousands)							Corporate and
Three Months Ended March 31, 2014	Fiber and Data		Equipment		Telecom		Other (2)			Consolidated
Revenue from unaffiliated customers	$	17,478	$	12,248	$	13,934	$	580		$	44,240
Intersegment revenue		221		-		434		(655	)		-
Total operating revenue		17,699		12,248		14,368		(75	)		44,240
Asset impairment		-		-		-		-			-
Depreciation and amortization		3,190		138		3,678		574			7,580
Operating income (loss)		2,947		486		1,895		(835	)		4,493
Interest expense		-		-		-		979			979
Income tax provision (benefit)		1,208		199		777		(743	)		1,441
Net income (loss)		1,739		287		1,118		(1,071	)		2,073
Total assets		116,481		16,120		104,999		24,517			262,117
Property, plant and equipment, net		97,474		1,959		74,280		5,028			178,741
Additions to property, plant and equipment (1)		2,588		109		1,804		433			4,934

(Dollars in thousands)							Corporate and
Three Months Ended March 31, 2013	Fiber and Data		Equipment		Telecom		Other (2)			Consolidated
Revenue from unaffiliated customers	$	16,471	$	17,237	$	14,248	$	813		$	48,769
Intersegment revenue		213		-		417		(630	)		-
Total operating revenue		16,684		17,237		14,665		183			48,769
Asset impairment		633		-		-		-			633
Depreciation and amortization		2,796		85		3,703		425			7,009
Operating income (loss)		1,638		821		1,870		(472	)		3,857
Interest expense		-		-		-		1,139			1,139
Income tax provision (benefit)		677		337		767		(687	)		1,094
Net income (loss)		961		485		1,104		(924	)		1,626
Total assets		113,326		23,365		110,382		16,352			263,425
Property, plant and equipment, net		94,153		1,904		79,569		5,709			181,335
Additions to property, plant and equipment (1)		2,943		558		1,760		528			5,789

(1) Does not include change in materials and supplies.

(2) Includes intersegment eliminations.