WARWICK VALLEY TELEPHONE COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($ in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Operating revenues: $ 6,245 $ 6,137 $ 17,266 $ 17,906
Operating expenses:
Cost of services and products
(exclusive of depreciation
and amortization expense) 2,427 1,886 6,776 5,804
Selling, general and
administrative expenses 2,672 2,984 8,041 9,103
Depreciation and
amortization 1,106 1,410 3,532 3,998
--------- --------- --------- ---------
Total operating expenses 6,205 6,280 18,349 18,905
--------- --------- --------- ---------
Operating income (loss) 40 (143) (1,083) (999)
Other income (expense):
Interest income (expense),
net of capitalized interest (71) (114) 34 (240)
Income from equity method
investments 2,663 2,626 7,384 6,761
Other income (expense), net (8) (28) (47) (18)
--------- --------- --------- ---------
Total other income (expense) 2,584 2,484 7,371 6,503
--------- --------- --------- ---------
Income before income taxes
and extraordinary item 2,624 2,341 6,288 5,504
Income taxes 916 784 2,202 1,871
--------- --------- --------- ---------
Income before extraordinary
item 1,708 1,557 4,086 3,633
Extraordinary item, net of
tax (73) - (73) -
--------- --------- --------- ---------
Net Income 1,635 1,557 4,013 3,633
Preferred dividends 6 6 19 19
--------- --------- --------- ---------
Income applicable to common
stock $ 1,629 $ 1,551 $ 3,994 $ 3,614
========= ========= ========= =========
Basic earnings per common share
Income before extraordinary
item $ 0.32 $ 0.29 $ 0.76 $ 0.68
Extraordinary item (0.01) - (0.01) -
--------- --------- --------- ---------
Basic earnings per share $ 0.31 $ 0.29 $ 0.75 $ 0.68
========= ========= ========= =========
Diluted earnings per common
share
Income before extraordinary
item $ 0.32 $ 0.29 $ 0.76 $ 0.68
Extraordinary item (0.01) - (0.01) -
--------- --------- --------- ---------
Diluted earnings per share $ 0.31 $ 0.29 $ 0.75 $ 0.68
========= ========= ========= =========
Weighted average shares of
common stock used to
calculate earnings per share
Basic 5,351,780 5,351,780 5,351,780 5,351,780
========= ========= ========= =========
Diluted 5,357,816 5,351,780 5,353,792 5,351,780
========= ========= ========= =========
Dividends declared per common
share $ 0.20 $ 0.20 $ 0.60 $ 0.60
========= ========= ========= =========
WARWICK VALLEY TELEPHONE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands except share and per share amounts)
September 30, December 31,
2008 2007
-------------- --------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,574 $ 5,849
Accounts receivable - net of allowance
for uncollectibles - $207 and $214, in
2008 and 2007, respectively 2,557 3,067
Other accounts receivable 126 152
Materials and supplies 1,218 1,591
Prepaid expenses 840 769
Deferred income taxes 98 119
-------------- --------------
Total current assets 10,413 11,547
-------------- --------------
Property, plant and equipment, net 35,247 35,791
Unamortized debt issuance costs 55 65
Other deferred charges - 762
Investments 8,607 8,276
Other assets 210 210
-------------- --------------
Total assets $ 54,532 $ 56,651
============== ==============
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 771 $ 940
Current maturities of long-term debt 1,519 1,519
Advance billing and payments 243 234
Customer deposits 101 116
Accrued taxes 315 80
Pension and postretirement benefit
obligations 615 929
Other accrued expenses 1,530 1,830
-------------- --------------
Total current liabilities 5,094 5,648
-------------- --------------
Long-term debt, net of current
maturities 4,556 5,695
Deferred income taxes 3,702 3,334
Long term income taxes payable - 640
Other liabilities and deferred credits 40 591
Pension and postretirement benefit
obligations 3,891 4,324
-------------- --------------
Total liabilities 17,283 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 3,495 3,487
Accumulated other comprehensive loss (836) (875)
Retained earnings 38,778 37,995
-------------- --------------
Total shareholders' equity 37,249 36,419
-------------- --------------
Total liabilities and shareholders'
equity $ 54,532 $ 56,651
============== ==============
Contact Information: Contact: WVT Communications Kenneth H. Volz Executive Vice President, Chief Financial Officer and Treasurer 845-986-8080