Operating ExpensesOperating expenses in the three months ended December 31, 2011, increased 3.1% to $19.8 million from $19.2 million in the three months ended December 31, 2010. Cost of services and products increased 13.3% to $11.2 million in the three months ended December 31, 2011, from $9.9 million in the three months ended December 31, 2010. The one-time benefits of the settlement of the FairPoint bankruptcy and carrier claims in 2010; Shoreham costs of service of $0.3 million; increases in cable programming and internet capacity of $0.2 million; and other operational costs of $0.2 million were partially offset by lower toll costs on $0.3 million. Selling, general and administrative expenses increased 6.0% to $3.5 million in the three months ended December 31, 2011, from $3.3 million in the three months ended December 31, 2010. The increase reflects the Shoreham expense (including acquisition expenses) of $0.3 million and benefits from carrier settlements in 2010 of $0.4 million more than offset by lower management expenses of $0.5 million. Depreciation and amortization for fourth quarter 2011 decreased 15.4% to $5.1 million from $6.0 million in the fourth quarter 2010. An increase for the acquisition of Shoreham of $0.2 million was offset by a decrease of $0.3 million in the amortization of intangible assets associated with the Country Road acquisition, including a covenant not to compete and contract and customer base intangible assets. The remaining decrease of $0.8 million reflected lower depreciation of plant assets in our regulated properties.
Otelco Reports Fourth Quarter And Year 2011 Results
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