WARWICK VALLEY TELEPHONE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($ in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2007 2006 2007 2006
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Operating revenues:
Local network service $ 799 $ 882 $ 2,418 $ 2,706
Network access service 2,078 2,174 6,093 6,217
Long distance services 1,007 887 2,742 2,633
Directory advertising 328 340 997 1,008
Online services 1,419 1,527 4,334 4,733
Other services and sales 506 526 1,322 1,455
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Total operating revenues 6,137 6,336 17,906 18,752
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Operating expenses:
Plant specific 1,081 1,332 3,138 3,707
Plant non-specific:
Depreciation and
amortization 1,410 1,264 3,998 4,166
Other 752 805 2,199 2,567
Customer operations 1,120 977 3,067 3,091
Corporate operations 1,322 1,709 4,459 6,198
Cost of services and sales 229 367 914 957
Property, revenue and payroll
taxes 366 273 1,130 953
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Total operating expenses 6,280 6,727 18,905 21,639
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Operating loss (143) (391) (999) (2,887)
Other income (expense):
Interest income (expense),
net of capitalized interest (114) 15 (240) 21
Income from equity method
investments 2,626 2,177 6,761 6,945
Gain on sale of investment - - - 611
Other income (expense), net (28) (16) (18) (28)
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Total other income (expense) 2,484 2,176 6,503 7,549
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Income before income taxes 2,341 1,785 5,504 4,662
Income taxes 784 526 1,871 1,500
--------- --------- --------- ---------
Net income 1,557 1,259 3,633 3,162
Preferred dividends 6 6 19 19
--------- --------- --------- ---------
Income applicable to common
stock $ 1,551 $ 1,253 $ 3,614 $ 3,143
========= ========= ========= =========
Basic and diluted earnings
per share of
outstanding common stock $ 0.29 $ 0.23 $ 0.68 $ 0.59
========= ========= ========= =========
Weighted average shares of
common stock outstanding 5,351,780 5,351,780 5,351,780 5,351,780
========= ========= ========= =========
WARWICK VALLEY TELEPHONE COMPANY
CONSOLIDATED BALANCE SHEETS
($ in thousands except share and per share amounts)
September 30, December 31,
2007 2006
----------- -----------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,385 $ 12,296
Accounts receivable - net of allowance for
uncollectibles - $150 and $107, in 2007 and
2006, respectively 3,551 4,121
Other accounts receivable 244 262
Materials and supplies 1,689 957
Prepaid expenses 695 695
Deferred income taxes 187 228
----------- -----------
Total current assets 11,751 18,559
----------- -----------
Property, plant and equipment, net 36,231 37,087
Unamortized debt issuance costs 68 77
Other deferred charges 849 814
Investments 8,644 3,733
Other assets 170 179
----------- -----------
Total assets $ 57,713 $ 60,449
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,081 $ 1,013
Current maturities of long-term debt 1,519 1,519
Advance billing and payments 251 251
Customer deposits 108 128
Accrued taxes 404 1,221
Pension and post retirement benefit
obligations 1,155 1,435
Other accrued expenses 2,062 2,199
----------- -----------
Total current liabilites 6,580 7,766
----------- -----------
Long-term debt, net of current maturities 6,075 7,214
Deferred income taxes 1,392 4,490
Long term income taxes payable 1,948 -
Other liabilities and deferred credits 655 624
Pension and post retirement benefit
obligations 7,857 7,583
----------- -----------
Total liabilities 24,507 27,677
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Shareholders' equity
Preferred shares - $100 par value; authorized
and issued shares of 5,000; $0.01 par value
authorized and unissued shares of 10,000,000; 500 500
Common stock - $0.01 par value; authorized
shares of 10,000,000
issued 5,985,463 shares 60 60
Treasury stock - at cost, 633,683 common
shares (4,748) (4,748)
Additional paid in capital 3,487 3,487
Accumulated other comprehensive loss (3,305) (3,554)
Retained earnings 37,212 37,027
----------- -----------
Total shareholders' equity 33,206 32,772
----------- -----------
Total liabilities and shareholders' equity $ 57,713 $ 60,449
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Contact Information: Contact: WVT Communications Kenneth H. Volz Executive Vice President & Chief Financial Officer 845-986-8080