WARWICK VALLEY TELEPHONE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the Years Ended December 31,
-------------------------------
2007 2006 2005
--------- --------- ---------
($ in thousands except share
and per share amounts)
Operating Revenues:
Local network service $ 3,367 $ 3,550 $ 3,903
Network access service 8,150 8,648 9,711
Long distance services 3,618 3,498 3,586
Directory advertising 1,325 1,348 1,390
Online services 5,733 6,223 6,734
Other services and sales 1,849 1,969 2,018
--------- --------- ---------
Total operating revenues 24,042 25,236 27,342
--------- --------- ---------
Operating Expenses:
Plant specific 4,415 5,388 4,911
Plant non-specific:
Depreciation & amortization 5,252 5,407 5,652
Other 2,932 3,531 3,561
Customer operations 4,232 4,164 4,460
Corporate operations 5,750 8,153 8,717
Cost of services and sales 1,341 1,199 1,578
Property, revenue and payroll taxes 1,218 1,188 1,410
--------- --------- ---------
Total operating expenses 25,140 29,030 30,289
--------- --------- ---------
Operating (loss) income (1,098) (3,794) (2,947)
Other Income (Expenses):
Interest income (expense), net (213) (30) (210)
Income from equity method investments,
net 9,651 9,367 10,638
Gain on sale of investment -- 611 889
Loss on write-down of investment -- -- (705)
Other income (expense), net (52) (117) 291
--------- --------- ---------
Total other income 9,386 9,831 10,903
--------- --------- ---------
Income before income taxes 8,288 6,037 7,956
Income Taxes 2,795 2,040 2,786
--------- --------- ---------
Net Income 5,493 3,997 5,170
Preferred Dividends 25 25 25
--------- --------- ---------
Income Applicable to Common Stock $ 5,468 $ 3,972 $ 5,145
========= ========= =========
Basic & Diluted Earnings per Share of
Outstanding Common Stock $ 1.02 $ 0.74 $ 0.96
========= ========= =========
Weighted Average Shares of Common Stock
Outstanding 5,351,780 5,351,780 5,359,862
========= ========= =========
WARWICK VALLEY TELEPHONE COMPANY
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2007 2006
------------- -------------
($ in thousands except share
and per share amounts)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,849 $ 12,296
Accounts receivable -- net of allowance for
uncollectibles -- $214 and $107 in 2007 and
2006, respectively 3,067 4,121
Other accounts receivable 152 262
Materials and supplies 1,591 957
Prepaid expenses 769 695
Deferred income taxes 119 228
------------- -------------
Total Current Assets 11,547 18,559
------------- -------------
Property, plant and equipment, net 35,791 37,087
Unamortized debt issuance costs 65 77
Other deferred charges 762 814
Investments 8,276 3,733
Other assets 210 179
------------- -------------
Total Assets $ 56,651 $ 60,449
============= =============
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 940 $ 1,013
Current maturities of long-term debt 1,519 1,519
Advance billing and payments 234 251
Customer deposits 116 128
Accrued taxes 80 1,221
Pension and post retirement benefit
obligations 929 1,435
Other accrued expenses 1,830 2,199
------------- -------------
Total Current Liabilities 5,648 7,766
------------- -------------
Long-term debt, net of current maturities 5,695 7,214
Deferred income taxes 3,334 4,490
Long-term income taxes payable 640 --
Other liabilities and deferred credits 591 624
Pension and postretirement benefit
obligations 4,324 7,583
------------- -------------
Total Liabilities 20,232 27,677
------------- -------------
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 (875) (3,554)
Retained earnings 37,995 37,027
------------- -------------
Total Shareholders’ Equity 36,419 32,772
------------- -------------
Total Liabilities and Shareholders’ Equity $ 56,651 $ 60,449
============= =============
Contact Information: Contact: WVT Communications Kenneth H. Volz Executive Vice President, Chief Financial Officer and Treasurer 845-986-8080