This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs