-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NC+U12jjrKlaJRM9zFX/l0sd9pY6e1t6LMTsf1EvR0cHXEn8NQMxRim1hutWB5TB a4pszx/8r5UzDki5tERVgA== 0000863437-05-000001.txt : 20050311 0000863437-05-000001.hdr.sgml : 20050311 20050311102519 ACCESSION NUMBER: 0000863437-05-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050311 DATE AS OF CHANGE: 20050311 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HECTOR COMMUNICATIONS CORP CENTRAL INDEX KEY: 0000863437 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 411666660 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13891 FILM NUMBER: 05674110 BUSINESS ADDRESS: STREET 1: 211 S MAIN ST STREET 2: P O BOX 428 CITY: HECTOR STATE: MN ZIP: 55342 BUSINESS PHONE: 6128486611 MAIL ADDRESS: STREET 1: P O BOX 428 STREET 2: 211 S MAIN ST CITY: HECTOR STATE: MN ZIP: 55342 8-K 1 hct8k031105.txt HECTOR COMM CORP EARNINGS RELEASE (03-10-05) - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) March 10, 2004 Hector Communications Corporation - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Minnesota 001-13891 41-1666660 --------------------- ---------------- ------------------ (State or other (Commission (IRS Employer jurisdiction File Number) Identification No.) of incorporation) 211 South Main Street Hector, Minnesota 55342 -------------------------- -------------- (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code (320) 848-6611 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On March 10, 2005, Hector Communications Corporation. (the "Company") reported its financial results for its fourth fiscal quarter ended December 31, 2004. See the Company's press release dated March 10, 2005, which is furnished as Exhibit 99.1 and incorporated by reference in this Current Report on Form 8-K. Item 9.01 Exhibits The following information is furnished as an exhibit to this Current Report: Exhibit No. Description of Exhibit - ----------- ------------------------------------------------------------- 99.1 Press Release dated March 10, 2005. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Hector Communications Corporation. Date: March 11, 2005 By /s/ Charles A. Braun ------------------------------------------- Charles A. Braun Chief Financial Officer EX-99 2 hctex994q04.txt EARNINGS RELEASE DATE 3/10/2005 Exhibit 99.1 Contact: Curtis A. Sampson, Chairman and Chief Executive Officer Steven H. Sjogren, President Paul N. Hanson, Vice President and Treasurer For Immediate Release Hector Communications Corporation Reports Revenues and Earnings for 2004 Fourth Quarter and Year March 10, 2005--Hector, MN--Hector Communications Corporation (AMEX: HCT) today reported operating results for its fourth quarter and twelve-month periods ended December 31, 2004. Revenues were $7,827,000 for the three months ended December 31, 2004, a decrease of 4% from $8,128,000 in 2003. The revenue decrease was mainly due to lower access revenues from long distance and wireless carriers. Operating income decreased 26% to $1,626,000 compared to $2,184,000 in 2003. Income from the Company's investment in Midwest Wireless Holdings LLC was $615,000 in the 2004 period compared to $245,000 in 2003. Net income was $1,203,000 or $.30 per diluted share in 2004 compared to $1,267,000 or $.33 per diluted share in 2003. Revenues from continuing operations for the 2004 twelve months were $31,570,000, a decrease of 2% from $32,322,000 in 2003. Operating income from continuing operations decreased 12% to $6,982,000 in 2004 from $7,957,000 in 2003. Income from the Company's investment in Midwest Wireless Holdings LLC increased 29% to $2,766,000 in 2004 from $2,148,000 in 2003. The Company recorded gains on sales of cable television systems totaling $1,081,000 ($.12 per diluted share net of income taxes and minority interest) in 2003. Income from continuing operations was $4,644,000 or $1.17 per diluted share in 2004 compared to $4,297,000 or $1.14 per diluted share in 2003. Income from discontinued operations was $882,000 or $.23 per diluted share in 2003. Curtis A. Sampson, chairman and chief executive officer, said "The Company's operating results continue to reflect the gains the wireless industry is making in competition with wireline carriers. Hector has a significant investment in the wireless industry itself through its 8% ownership interest in Midwest Wireless Holdings. The sharp increase in Midwest Wireless earnings and lower borrowing costs offset the decrease in the Company's operating income in 2004. Dividend The Company's Board of Directors declared its second quarterly cash dividend of $.05 per share. The dividend will be paid on March 15, 2005 to shareholders of record on February 25, 2005. Hector Communications Corporation is a telecommunications holding company which, through its wholly-owned and majority-owned subsidiaries, provides local telephone service, video and high-speed internet service in rural communities in Minnesota, Wisconsin and North Dakota. The Company serves 29,600 telephone access lines, 7,900 cable television subscribers and 10,600 internet customers and has minority ownership interests in other telecommunications companies. - -------------------------------------------------------------------------------- From time to time in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders and the investing public, the Company may make statements regarding the Company's future financial performance. Such forward looking statements are subject to risks and uncertainties, including but not limited to, the effects of the Telecommunications Act, new technological developments which may reduce barriers for competitors entering the Company's local exchange or cable television markets, higher than expected expenses and other risks involving the telecommunications industry generally. All such forward-looking statements should be considered in light of such risks and uncertainties. - -------------------------------------------------------------------------------- Hector Communications Corporation and Subsidiaries Earnings Summary Three Months Ended December 31 2004 2003 ------------ ------------ Revenues $ 7,826,521 $ 8,128,433 Operating income 1,625,961 2,184,252 Other income (expense): Income (loss) from investments: Midwest Wireless Holdings, LLC 614,798 245,354 Other unconsolidated affiliates 251,403 172,203 Interest and dividend income 253,758 204,976 Interest expense (650,935) (671,053) Gain on sale of cable television systems and other business 43,876 ------------ ------------ Net other income (expense) 512,900 (48,520) Income before income taxes 2,138,861 2,135,732 Income tax expense (936,000) (869,000) ------------ ------------ Net Income $ 1,202,861 $ 1,266,732 ============ ============ Basic net income per common share $ .32 $ .36 Diluted net income per share .30 .33 Twelve Months Ended December 31 2004 2003 ------------ ------------ Revenues from continuing operations $ 31,569,770 $ 32,322,428 Operating income from continuing operations 6,982,180 7,956,646 Other income (expense): Income (loss) from investments: Midwest Wireless Holdings, LLC 2,765,887 2,148,444 Other unconsolidated affiliates 482,847 96,299 Interest and dividend income 445,333 391,897 Interest expense (2,867,135) (3,401,479) Gain on sale of cable television systems and other business 85,271 1,080,723 ------------ ------------ Net other income (expense) 912,203 315,884 Income from continuing operations before income taxes 7,894,383 8,272,530 Income tax expense (3,250,000) (3,316,000) Minority interest in earnings of continuing operations of Alliance Telecommunications Corp. (659,624) ------------ ------------ Income from continuing operations 4,644,383 4,296,906 Income from discontinued operations 881,854 ------------ ------------ Net Income $ 4,644,383 $ 5,178,760 ============ ============ Basic net income per common share: Continuing operations $ 1.28 $ 1.23 Discontinued operations .25 ------------ ------------- $ 1.28 $ 1.48 ============= ============= Diluted net income per share: Continuing operations $ 1.17 $ 1.14 Discontinued operations .23 ------------ ------------- $ 1.17 $ 1.37 ============ ============= Hector Communications Corporation and Subsidiaries Condensed Balance Sheet December 31 December 31 2004 2003 ------------ ------------ Cash $ 19,980,506 $ 16,581,315 Other current assets 8,032,610 8,609,295 Property, plant and equipment, net 40,040,493 43,088,106 Excess of cost over net assets acquired 30,921,094 31,691,927 Investment in Midwest Wireless Holdings, LLC 15,380,543 13,349,155 Investments in other unconsolidated affiliates 3,304,726 2,796,035 Other investments 6,880,549 6,533,858 Other assets 382,322 409,664 ------------ ------------ Total Assets $124,922,843 $123,059,355 ============ ============ Notes payable and current portion of long-term debt $ 6,352,000 $ 6,537,800 Other current liabilities 4,060,611 5,338,386 Long-term debt, less current portion 54,084,480 57,529,378 Deferred taxes and credits 5,463,894 4,911,869 Deferred compensation 749,128 698,254 Stockholders' equity 54,212,730 48,043,668 ------------ ------------ Total Liabilities and Stockholders' Equity $124,922,843 $123,059,355 ============ ============ -----END PRIVACY-ENHANCED MESSAGE-----