WARWICK VALLEY TELEPHONE COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($ in thousands, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2007 2006 2007 2006
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Operating revenues:
Local network service $ 794 $ 908 $ 1,619 $ 1,824
Network access service 2,066 2,109 4,015 4,043
Long distance services 825 890 1,735 1,746
Directory advertising 331 328 669 668
Online services 1,440 1,577 2,915 3,206
Other services and sales 422 529 816 929
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Total operating revenues 5,878 6,341 11,769 12,416
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Operating expenses:
Plant specific 871 1,211 2,057 2,376
Plant non-specific:
Depreciation and
amortization 1,294 1,434 2,588 2,905
Other 746 890 1,447 1,760
Customer operations 895 1,088 1,947 2,113
Corporate operations 1,587 2,609 3,137 4,489
Cost of services and sales 294 230 685 590
Property, revenue and payroll
taxes 347 333 764 680
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Total operating expenses 6,034 7,795 12,625 14,913
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Operating loss (156) (1,454) (856) (2,497)
Other income (expense):
Interest income (expense),
net of capitalized interest (92) 23 (126) 6
Income from equity method
investments 2,265 2,487 4,135 4,768
Gain on sale of investment - - - 611
Other income (expense), net 28 (6) 10 (12)
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Total other income (expense) 2,201 2,504 4,019 5,373
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Income before income taxes 2,045 1,050 3,163 2,876
Income taxes 695 356 1,087 974
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Net income 1,350 694 2,076 1,902
Preferred dividends 7 7 13 13
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Income applicable to common
stock $ 1,343 $ 687 $ 2,063 $ 1,889
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Basic and diluted earnings
per share of outstanding
common stock $ 0.25 $ 0.13 $ 0.39 $ 0.35
========= ========= ========= =========
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)
June 30, December 31,
2007 2006
----------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 7,330 $ 12,296
Accounts receivable - net of allowance
for uncollectibles - $134 and $107,
in 2007 and 2006, respectively 3,442 4,121
Other accounts receivable 261 262
Materials and supplies 1,372 957
Prepaid expenses 765 695
Deferred income taxes 222 228
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Total current assets 13,392 18,559
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Property, plant and equipment, net 36,411 37,087
Unamortized debt issuance costs 71 77
Other deferred charges 798 814
Investments 8,450 3,733
Other assets 170 179
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Total assets $ 59,292 $ 60,449
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,650 $ 1,013
Current maturities of long-term debt 1,519 1,519
Advance billing and payments 274 251
Customer deposits 119 128
Accrued taxes 863 1,221
Pension and post retirement benefit
obligations 1,155 1,435
Other accrued expenses 1,531 2,199
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Total current liabilites 7,111 7,766
----------- ------------
Long-term debt, net of current
maturities 6,454 7,214
Deferred income taxes 1,032 4,490
Long term income taxes payable 3,659 -
Other liabilities and deferred credits 624 624
Pension and post retirement benefit
obligations 7,766 7,583
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Total liabilities 26,646 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 (3,388) (3,554)
Retained earnings 36,735 37,027
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Total shareholders' equity 32,646 32,772
----------- ------------
Total liabilities and shareholders'
equity $ 59,292 $ 60,449
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Contact Information: Contact: WVT Communications Kenneth H. Volz Chief Financial Officer 845-986-8080