Quarterly Segment Financial Summary

6 Months Ended

Jun. 30, 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, cloud, 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 cloud services. We own, lease and 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. 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 and six months ended June 30, 2014 and 2013 is as follows:

(Dollars in thousands)							Corporate and Other (2)
Three Months Ended June 30, 2014	Fiber and Data		Equipment		Telecom					Consolidated
Revenue from unaffiliated customers	$	17,632	$	17,407	$	13,960	$	724		$	49,723
Intersegment revenue		211		-		426		(637	)		-
Total operating revenue		17,843		17,407		14,386		87			49,723
Asset impairment		-		-		-		-			-
Depreciation and amortization		3,107		130		3,708		565			7,510
Operating income (loss)		2,377		1,716		1,852		(1,751	)		4,194
Interest expense		-		1		-		990			991
Income tax provision (benefit)		963		695		751		(1,109	)		1,300
Net income (loss)		1,415		1,020		1,103		(1,627	)		1,911
Total assets		116,854		26,180		105,165		22,424			270,623
Property, plant and equipment, net		97,651		1,859		73,957		4,602			178,069
Additions to property, plant and equipment (1)		3,180		28		3,508		133			6,849

(Dollars in thousands)							Corporate and Other (2)
Three Months Ended June 30, 2013	Fiber and Data		Equipment		Telecom					Consolidated
Revenue from unaffiliated customers	$	16,779	$	15,116	$	14,206	$	1,040		$	47,141
Intersegment revenue		213		-		416		(629	)		-
Total operating revenue		16,992		15,116		14,622		411			47,141
Asset impairment		5		-		-		-			5
Depreciation and amortization		2,922		124		3,756		450			7,252
Operating income (loss)		2,249		934		1,953		(130	)		5,006
Interest expense		-		-		-		1,131			1,131
Income tax provision (benefit)		912		378		791		(514	)		1,567
Net income (loss)		1,340		555		1,163		(737	)		2,321
Total assets		112,582		24,964		109,614		18,230			265,390
Property, plant and equipment, net		93,964		2,202		78,658		5,781			180,605
Additions to property, plant and equipment (1)		2,970		403		2,622		521			6,516

							Corporate and Other (2)
Six Months Ended June 30, 2014	Fiber and Data		Equipment		Telecom					Consolidated
Revenue from unaffiliated customers	$	35,110	$	29,655	$	27,894	$	1,304		$	93,963
Intersegment revenue		432		-		860		(1,292	)		-
Total operating revenue		35,542		29,655		28,754		12			93,963
Asset impairment		-		-		-		-			-
Depreciation and amortization		6,297		268		7,386		1,139			15,090
Operating income (loss)		5,324		2,202		3,747		(2,586	)		8,687
Interest expense		-		1		-		1,969			1,970
Income tax provision (benefit)		2,171		894		1,528		(1,852	)		2,741
Net income (loss)		3,154		1,307		2,221		(2,698	)		3,984
Total assets		116,854		26,180		105,165		22,424			270,623
Property, plant and equipment, net		97,651		1,859		73,957		4,602			178,069
Additions to property, plant and equipment (1)		5,768		137		5,312		566			11,783

							Corporate and Other (2)
Six Months Ended June 30, 2013	Fiber and Data		Equipment		Telecom					Consolidated
Revenue from unaffiliated customers	$	33,250	$	32,353	$	28,454	$	1,853		$	95,910
Intersegment revenue		426		-		833		(1,259	)		-
Total operating revenue		33,676		32,353		29,287		594			95,910
Asset impairment		638		-		-		-			638
Depreciation and amortization		5,718		209		7,459		875			14,261
Operating income (loss)		3,887		1,755		3,823		(602	)		8,863
Interest expense		-		-		-		2,270			2,270
Income tax provision (benefit)		1,589		715		1,558		(1,201	)		2,661
Net income (loss)		2,301		1,040		2,267		(1,661	)		3,947
Total assets		112,582		24,964		109,614		18,230			265,390
Property, plant and equipment, net		93,964		2,202		78,658		5,781			180,605
Additions to property, plant and equipment (1)		5,913		961		4,382		1,049			12,305

(1) Net of Broadband Stimulus Funds received and does not include changes in materials and supplies.

(2) Includes intersegment eliminations.