|1.||What is Otelco’s history?|
Otelco was initially formed for the purpose of acquiring and operating rural local exchange carriers. Since 1999, we have acquired eleven RLEC businesses: four serve a contiguous territory in north central Alabama; three in Maine, adjacent to Portland and Bangor; and one each in Western Massachusetts, central Missouri, central Vermont and southern West Virginia. In addition, we have acquired two CLEC businesses serving the states of Maine, New Hampshire and Massachusetts; a provider of cloud hosting and managed services and an Internet provider in Missouri, as well as grown our unregulated services offerings in each state.
|2.||When was your IPO? Have there been additional securities’ changes since the IPO?|
| ||Our Income Deposit Securities (IDS) began publicly trading in December of 2004. In May 2013, the IDSs were extinguished and new Class A shares were issued to our subordinated debt holders and new Class B shares were issued to our senior debt holders as part of our balance sheet restructuring. One new Class A share was issued for every five bonds held, including those held as part of the IDS unit. In February 2016, the Class B shares were exchanged on a one-for-one basis for Class A shares, coincident with the funding of new credit facilities.|
Under the 2014 Stock Plan approved by our shareholders, shares have been issued to senior management and the Board of Directors as part of their compensation. No further awards may be granted under this plan.
Under the 2018 Stock Incentive Plan approved by our shareholders an aggregate of 250,000 shares may be issued at the direction of the direction of the compensation committee of the Board of Directors.
|3.||Where are your Class A shares traded?|
| ||Otelco’s Class A shares are traded on the Nasdaq Capital Market under the symbol OTEL.|
|4.||Why does Otelco provide Consolidated EBITDA and net leverage measures in its earnings press releases? |
| ||Otelco utilizes a significant portion of its cash generated from normal operations to pay principal and interest on its credit facilities, as well as invest back into its business. Earnings before interest, taxes, depreciation and amortization (or Consolidated EBITDA), is a measure used by many investors to determine the cash generated within the reporting period that is available for these uses. |
One of the Company’s primary objectives is to reduce leverage toward industry norms. By showing a ratio of debt, net of cash, to Consolidated EBITDA for the trailing twelve months as a supplement to its financial information, the investor can determine what level of leverage exists if existing cash were used to reduce the principal on the debt.
Tables reconciling Consolidated EBITDA to net income and net leverage to the balance sheet are always provided in Otelco's filings on SEC Form 8-K, 10-Q and 10-K.
|5.||When does your fiscal year end?|
| ||December 31st.|
|6.||Do you have a direct stock purchase plan? |
| ||Not at this time. The Company’s stock (OTEL) can be purchased through any registered brokerage.|
|7.||Who do I contact regarding lost stock certificates or change of address?|
| ||Contact our transfer agent listed below. Otelco trades on an electronic basis only, avoiding lost certificates.|
|8.||How many shares does Otelco have outstanding?|
| ||Refer to the most recent SEC Form 10-Q or 10-K in the SEC Filings section for a recent count of the Company’s outstanding shares.|
|9.||Who is your transfer agent?|
Our transfer agent is EQ Shareowner Services. They may be contacted using the following information:
EQ Shareowner Services
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120
Toll free line for shareholder inquiries: 1-800-468-9716
|10.||Who are your auditors?|
| ||Our auditors are BDO USA, LLP, an independent registered public accounting firm, located at 1100 Peachtree Street, Suite 700, Atlanta, GA 30309-4516.|
|11.||Who is your outside legal counsel?|
| ||Our legal counsel is Dorsey & Whitney, LLP, 51 West 52nd Street, New York, NY 10019.|
|12.||Can I have access to the quarterly investor conference calls?|
| ||Yes. Otelco also provides an audio webcast and replay of financial conference calls. Both events are shown in the Calendar of Events section. You can fill out an Email Alert to be notified of upcoming calls.|
|13.||How do I get the latest information on any planned merger or acquisition activity?|
| ||Any merger and acquisition activity information is provided thought Press Releases and SEC filings which are available on this website.
|14.||When is the annual shareholder meeting held?|
| ||The annual shareholder meeting is typically held in May as determined by the Board of Directors. Proxy materials and annual reports are mailed out about 30 days before the meeting. Refer to the Calendar of Events for a specific schedule of important upcoming dates.|
|15.||How many people does Otelco employ?|
| ||We employ approximately 222 people.|| |