WARWICK VALLEY TELEPHONE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($ in thousands, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Operating revenues:
Local network service $ 758 $ 794 $ 1,507 $ 1,619
Network access service 1,722 2,066 3,635 4,015
Long distance services 745 825 1,567 1,735
Directory advertising 317 331 642 669
Online services 1,342 1,440 2,682 2,915
Other services and sales 493 422 988 816
--------- --------- --------- ---------
Total operating revenues 5,377 5,878 11,021 11,769
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Operating expenses:
Plant specific 1,262 871 2,576 2,057
Plant non-specific:
Depreciation and
amortization 1,067 1,294 2,426 2,588
Other 820 746 1,583 1,447
Customer operations 1,051 895 2,181 1,947
Corporate operations 1,263 1,587 2,561 3,137
Cost of services and sales 279 294 540 685
Property, revenue and payroll
taxes 397 347 746 764
Postretirement liability
curtailment (gains) (469) - (469) -
--------- --------- --------- ---------
Total operating expenses 5,670 6,034 12,144 12,625
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Operating loss (293) (156) (1,123) (856)
Other income (expense):
Interest income (expense),
net of capitalized interest 192 (92) 105 (126)
Income from equity method
investments 2,574 2,265 4,721 4,135
Other income (expense), net 10 28 (39) 10
--------- --------- --------- ---------
Total other income (expense) 2,776 2,201 4,787 4,019
--------- --------- --------- ---------
Income before income taxes 2,483 2,045 3,664 3,163
Income taxes 865 695 1,286 1,087
--------- --------- --------- ---------
Net income 1,618 1,350 2,378 2,076
Preferred dividends 7 7 13 13
--------- --------- --------- ---------
Income applicable to common
stock $ 1,611 $ 1,343 $ 2,365 $ 2,063
========= ========= ========= =========
Basic and diluted earnings
per share of outstanding
common stock $ 0.30 $ 0.25 $ 0.44 $ 0.39
========= ========= ========= =========
Weighted average shares of
common stock outstanding 5,351,780 5,351,780 5,351,780 5,351,780
========= ========= ========= =========
WARWICK VALLEY TELEPHONE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands except share and per share amounts)
June 30, December 31,
2008 2007
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,735 $ 5,849
Accounts receivable - net of allowance
for uncollectibles - $187 and $214, in
2008 and 2007, respectively 2,474 3,067
Other accounts receivable 163 152
Materials and supplies 1,534 1,591
Prepaid expenses 809 769
Deferred income taxes 105 119
------------ ------------
Total current assets 10,820 11,547
------------ ------------
Property, plant and equipment, net 35,354 35,791
Unamortized debt issuance costs 58 65
Other deferred charges 746 762
Investments 8,700 8,276
Other assets 210 210
------------ ------------
Total assets $ 55,888 $ 56,651
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,147 $ 940
Current maturities of long-term debt 1,519 1,519
Advance billing and payments 266 234
Customer deposits 104 116
Accrued taxes 682 80
Pension and post retirement benefit
obligations 929 929
Other accrued expenses 1,425 1,830
------------ ------------
Total current liabilities 6,072 5,648
------------ ------------
Long-term debt, net of current
maturities 4,936 5,695
Deferred income taxes 3,741 3,334
Long term income taxes payable - 640
Other liabilities and deferred credits 591 591
Pension and post retirement benefit
obligations 3,879 4,324
------------ ------------
Total liabilities 19,219 20,232
------------ ------------
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 (849) (875)
Retained earnings 38,219 37,995
------------ ------------
Total shareholders' equity 36,669 36,419
------------ ------------
Total liabilities and shareholders'
equity $ 55,888 $ 56,651
============ ============
Contact Information: Contact: WVT Communications Kenneth H. Volz Executive Vice President, Chief Financial Officer and Treasurer 845-986-8080