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OTELCO INC.

No Longer Reporting

The company has not filed an annual or quarterly report since its FY2020 10-K, filed Mar 16, 2021. Its latest SEC filing is a 4 from Apr 16, 2021.

The sections below describe the company as of the FY2020 annual report.

What Did They Do?

Provides wireline communications and broadband services to residential and business customers and carriers, plus cloud hosting for small and mid-sized companies.

How Did They Make Money?

Households and businesses pay monthly for phone and internet services; carriers are billed access charges for calls carried on Otelco's network. Transport, cable, hosting and engineering fees are earned as services are provided, while some fiber lease payments are collected at lease start and spread over the lease term.

FY2020 revenue

Who Were Their Customers?

The rural phone businesses sell retail phone and bundled services to residential and business customers; the competitive carrier reaches business customers through employee and agent sales, and other carriers pay to use its network.

Did Revenues Turn Into Profits?

Yes. It kept 10 cents of every revenue dollar as net income in FY2020 and turned 11 cents into free cash flow.

Operating income, FY2020
19% of revenue
▼ −22% vs FY2019 ($14.8M, 24%)
Net income, FY2020
10% of revenue
▼ −19% vs FY2019 ($7.8M, 12%)
Free cash flow, FY2020
11% of revenue
▲ +123% vs FY2019 ($3M, 5%)

How Were They Changing?

Since the FY2020 annual report
  • Mar 31, 2021 Oak Hill Capital completed its acquisition of Otelco Otelco became a wholly owned indirect subsidiary, and Nasdaq trading was suspended.

Shrank. Revenue fell 10% in 4 years, from $68.9M in FY2016 to $62M in FY2020, about 3% a year.

Who Did They Compete With?

Competes with Charter Communications, Comcast, Co-Mo Electric Cooperative, Consolidated Communications, Verizon, DISH Network, AT&T, Amazon, Microsoft, Google, and IBM

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