Otelco CEO Discusses Q2 2011 Results - Earnings Call Transcript
With that stated, I'll turn the call over to Mike Weaver.
Mi chael Weaver
Thanks, Kevin. Good morning, everyone, and welcome to our call. Before I start to review the second quarter results, I'd like to provide updates on a few topics.
First, the acquisition process for Shoreham Telephone, which we announced earlier this year, continues to move forward in a timely manner. We've completed several meetings with the appropriate regulatory authorities. And at this point, we expect to close the transaction early in the fourth quarter.As we've discussed on prior calls, Shoreham is family-owned RLEC located in Western Vermont offering telephone, long distance and broadband services throughout the rural county area. Our plans include expanding the existing broadband coverage, adding bundled services to the current offerings and using the existing network as our anchor into the CLEC business in Vermont. In many ways, the Shoreham acquisition represents the ideal acquisition target for us. It's an established RLEC with predictable and stable revenue streams that also provides an opportunity for further expansion into the non-regulated aspects of our businesses in New England. The damage to our plant facilities resulting from the late April tornadoes in our Alabama service area has been completely restored. The total cost of the restoration was approximately $700,000 with the majority of the costs has been reimbursed this week by our insurer. The storm negatively affected our broadband subscribers as a number of the subscribers that sustained serious tornado damage have not yet renewed their service with us. The other impact the storm had was to delay our plans to place our soft switch in service, which caused us to push back the planned service offerings that were provided by the optic switch, thus deferring our expansion in the hosted PBX market in Alabama until the fourth quarter of this year.
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