2007Annual Report.pdf

,1 .
ANNUAL REPORT
OF
CTCTelecom, Inc:.
NAME
C-tL-r
P.O. Box 88, Cambridge, ID 83610
ADDRESS
TO THE
IDAHO PUBLIC
UTiliTIES COMMISSION
FOR THE
YEAR ENDED Deceinber31,2007
See Accountants Compilation Report
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ACCOUNTANT'S COMPILATION REPORT
The Board of Directors
CTC Telecom, mc.
Cambridge, Idaho 83610
We have compiled the accompanying balance sheets ofCTC Telecom, mc. as of December 31,2007 and 2006,
and the related income and retained earings statement for the year ended December 31, 2007, included in the
accompanying prescribed form, in accordance with Statements on Standads for Accounting and Review
Services issued by the American mstitute of Certified Public Accountats. We have also compiled the
supplementa information, except for pages 1,2, 18, 19, and 20.
Our compilation was limited to presenting in the form prescribed by the Idaho Public Utilties Commission
information that is the representation of management. We have not audited or reviewed the financial statements
referred to above and, accordingly; do not express an opinion or any other form of assurance on them.
These financial statements and the supplementar information are presented in accordance with the
requirements of the Idaho Public Utilties Commission, which differ from generally accepted accounting
priciples. Accordingly, the financial statements and supplementar information are not designed for those
who are not informed about such differences.
The information contained on pages 1,2, 18, 19, and 20 has not been audited, reviewed, or compiled by us,
and, accordingly, we assume no responsibilty for that information.
~ ú: LL/J
Colorado Springs, CO
April 26, 2008
Kiesling Associates LLP I Kiesling Consulting LLC I Kiesling Investment Management LLC
ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING DECEMBER 31, 2007
COMPANY INFORMATION
Exact name of utility: CTC Telecom, Inc.
Address of principal office: P.O. Box 69, 130 Superior St., Cambridge, 1083610
Telephone Number (Area Code 208 257-3314
Cities or towns served: Hidden Springs, 10, Boise
Name and title of offcer having custody of the general corporate books of account:
Richard Wiggins, President
Address of offce where corporate books are kept and phone number:
P.O. Box 69, 130 Superior St., Cambridge, ID 83610, [phone]
Organized under the laws of the State of: Idaho
Date of organization: 17-Feb-98
Form of organization (proprietorship, association, corporation): Corporation
If a Subchapter S Corporation, please specify:
Name and address of controllng company, if any: Cambridge Telephone Company, Inc.
P.O. Box 69, 130 Superior St., Cambridge, ID 83610
Names of affiliated companies. Give address and description of business: Cambridge Telephone Company, Inc.
P.O. Box 69,130 Superior St., Cambridge, ID 83610-Telecommunications Service;
CTC Construction, LLC P.O. Box 88, Cambridge, ID 83610-Construction Services
OFFICERS
Report below the title, name and office address of each general officer of the utility at the end of the
year. If there were any changes during the year, show the name, title, and address of the previous
officer and the date of change.
Title
President
Vice President
Secretaryrrreasurer
Name
Richard Wiggins
Kermit Wiggins
Kristie Kanady
Address
1745 Fairview Ave., Weiser, 1083672
P.O. Box 69, Cambridge, ID 83610
P.O. Box 353, Cambridge, 1083610
Rev 3/02 Page 1
See Accountant's Compilation Report
DIRECTORS
List the name of each person who was a member of the Board of Directors at any given time during the
year: (Fees related to meetings only.)
Name
and Address
Richard Wiggins
P.O. Box 69, Cambridge, ID 83610
Kermit Wiggins
P.O. Box 69, Cambridge, ID 83610
Kristie Kanady
P.O. Box 353, Cambridge, ID 83610
Term Expired
or Current Term
Wil Expire
Meetings Attended
This year
Fees Paid
During Year
Indefnite 1 None
Indéfinite 1 None
Indefinite 1 None
Name of Chairman of the Board: Richard Wiggins
Name of Secretary (or Clerk) of Board: Kristie Kanady
Number of Meetings of the Board during the year: 1
MANAGERS
List the name of each person who performed management duties for the Company during the year, and
the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.)
Name Title Wages and Bonuses Paid
Rev 3/02 Page 2
See Accountant's Compilation Report
NOTES TO THE FINANCIAL STATEMENTS
Please provide important information such as changes in accounting or depreciation practices,
extensions or additions to the system; disposal of any substantial portion of the propert of the utility;
reorganization, mergers, or consolidations with other companies; leases executed; other contracts
or agreements entered into; changes made in articles of incorporation or amendments; the
occurrence of contingency losses or gains.
1 In 1998, CTC Telecom, Inc., (CTC) a wholly-owned subsidiary of Cambridge Telephone Company
Inc. was incorporated, with an initial investment of $100,000. CTC operates asa Competitive
Local Exchange Carrier in the state of Idaho. Construction of plant facilities was complete in 1999
and began providing services on September 1, 1999. PCS wireless facilities were completed and
service initiated in September, 2001. Additional paid-in capital of $900,000 was invested by
Cambridge Telephone Company, Inc. through December 31,2007.
2 In April, 1999, CTC secured a loan from CoBank, ACB in the amount of $1,700,000, of which
$896,981 was unpaid as of December 31, 2007. The loan is secured by a Leasehold Deed
of Trust and Security Agreement covering all real and personal propert. In addition, the loan is
secured by Personal Guarantee of Payment Agreements by certain shareholders of Cambridge
Telephone Company, and Pledge Agreements for stock of Cambridge Telephone Company
owned by certain shareholders.
An additional loan from CoBank, ACB of $800,000 was arranged for in 2001 of which $332,334
was unpaid as of December 31, 2007.
3 The Company has entered into a lease for land effective 2/15/99. The lease is 10 years and
additional leases were obtained for cell sites in 2001. Annual lease payments are $12,900.
4 During 2006, the Company made a prior period adjustment to reclassify $21,375 of payments
received in 2005 out of 2005 net income and into a deferred revenue account to be recognized over
10 years, the expected life of the assets. Had this reclassification not been made, 2005 net
income (loss) would have been reduced by $21,375, net of tax of $7,550. Prior year balance
sheet items were adjusted to reflect this prior period adjustment.
Rev 3/02 Page 3
See Accountant's Compilation Report
BALANCE SHEET
Assets and Other Debits
Balance Balance Increase
Beginning at End or
Title of Account of Year of Year (Decrease)
Current Assets
1120 Cash and Equivalents
1130 Cash 7,049 50 (6,999)
1140 Special Cash Deposits
1150 Working Cash Advances
1160 Temporary Investments
1180 Telecommunications Accts. Receivable 27,248 7,400 (19,848)
1181 Accts. Rec. Allow. -Telecommunications
1190 Other Accounts Receivable 44,812 64,777 19,965
1191 Accounts Receivable Allow. - Other
1200 Notes Receivable
1201 Notes Receivable Allowance
1210 Interest & Dividends Receivable
1220 Material and Supplies 15,665 20,561 4,896
1280 Prepayments
1290 Prepaid Rents 10,200 7,200 (3,000)
1300 Prepaid Taxes
1310 Prepaid Insurance
1320 Prepaid Directory Expenses
1330 Other Prepayments
1350 Other Current Assets
Noncurrent Assets
1401 Investment in Affilated Companies
1402 Investment in Nonaffilated Companies 188,319 195,081 6,762
1406 Nonregulated Investments
1407 Unamortized Debt Issuance Expense
1408 Sinking Funds
1410 Other Noncurrent Assets 70,278 70,278
1438 Deferred Maintenance & Retirements
1439 Deferred Charges 7,900 7,900
1500 Other Jurisdiction Assets - Net
Propert, Plant and Equipment
2001 Telecommunications Plants in Service 4,039,341 4,486,386 447,045
2002 Prop. Held for Future Telecom. Use
2003 Telecom. Plant under Constr. - Short Term 67,980 (67,980)
2004 Telecom. Plant under Constr. - Long Term
2005 Telecom. Plant Adjustment
2006 Nonoperating Plant
2007 Goodwil
Depreciation and Amortization Accounts
3100 Accumulated Depreciated (1,607,650)(1,980,190)(372,540)
3200 Accum. Depre. - Held for Future Use
3300 Accumulated Depreciation - Nonoperating
3400 Accumulated Amortization - Tangible
3410 Accum. Amort. - Capitalized Leases
3420 Accum. Amort. - Leasehold Improvements (12,294)12,294
3500 Accumulated Amortization -Intangible
3600 Accumulated Amortization - Other
TOTAL ASSETS 2,858,848 2,879,443 20,595
Rev 3/02 Page 4
See Accountant's Compilation Report
BALANCE SHEET
Liabilties & Stockholders' Equity
Balance Balance Increase
Beginning at End or
Title of Account of Year of Year (Decrease)
Current Liabilties
4010 Accounts Payable 1,284,518 1,532,255 247,737
4020 Notes Payable
4030 Advance Bilings and Payments 87,578 91,369 3,791
4040 Customer Deposits
4050 Current Maturities - Long -Term Debt 241,667 241,667
4060 Current Maturities - Capital leases
4070 Income Taxes - Accrued
4080 Other Taxes - Accrued 16,786 14,992 (1,794)
4100 Net Current Defer. Oper. Income Taxes
4110 Net Current Defer. Nonoper. Income Taxes
4120 Other Accrued Liabilities 10,643 8,223 (2,420)
4130 Other Current Liabilties
Long-Term Debt
4210 Funded Debt 1,229,315 987,648 (241,667)
4220 Premium on Long-Term Debt
4230 Discount on Long-Term Debt
4240 Reacquired Debt
4250 Obligations Under Capital Leases
4260 Advances from Affliated Companies
4270 Other Long-Term Debt
Other Liabilities & Deferred Credits
4310 Other Long-Term Liabilities
4320 Unamort. Oper. Invest. Tax Credits - Net
4330 Unamort. Nonoper. Invest. Tax Credits - Net
4340 Net Noncurrent Defer. Oper. Income Taxes 56,744 45,883 (10,861)
4350 Net Noncur. Defer. Nonoper. Income Taxes 5,630 4,777 (853)
4360 Other Deferred Credits 65,373 107,747 42,374
4370 Other Juris. Liab. & Def. Credits - Net
Stockholders' Equity
4510 Capital Stock 100,000 100,000
4520 Additional Paid-In Capital 900,000 900,000
4530 Treasury Stock
4540 Other Capital
4550 Retained Earnings (1,139,406)(1,155,118)(15,712)
TOTAL L1AB. & OTHER CREDITS 2,858,848 2,879,443 20,595
Rev 3/02 Page 5
See Accountant's Compilation Report
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INVESTMENTS
Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the
account in which included. Minor amounts in Account 1406 may be grouped by classes.
Description
CoBank patronage
Info USA Stock
Totals
Date Acquired
various
11/27/2002
Book Cost of
Investments
Disposed of
This year
RECEIVABLES
Book Cost of
Investments
Held at
End of Year
85,881
109,200
195,081
Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and
include the maturity date and interest rate. Minor amounts in Account 1210 may be combined.
Name of Company
Customer accounts receivable
Interexchange carriers
CoBank
Miscellaneous
Totals
Rev 3/02
Amount at End of YearNotes Accounts
Receivable Receivable
9,341
3,644
6,762
52,430
Page 10
See Accountant's Compilation Report
72,177
NOTES PAYABLE
For Notes Payable, list each note separately and include the maturity date and interest rate.
Name of' Creditor
NONE
Totals
Date of Note
Interest
Rate
ACCOUNTS PAYABLE
Report below all Accounts Payable amounting to more than $100.00
Name of Creditor
Cambridge Telephone Company
Track Utilities, Inc.
RINA,LLC
Zone Telecom
Bank overdraft at 12/31/07
Other, Various
Due Date
Totals
Rev 3/02 Paqe 11 .1 t. R rt
See Accountant's-çompi a ion epo
Face Amount
Amount
1,482,266
13,719
11,959
10,187
9,581
4,543
1,532,255
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3
CAPITAL STOCK
Report below the particulars called for concerning common and preferred stock at end of year,
designating separate series of any general class. Show totals separately for common and
preferred.
For each class of preferred stock, show the dividend rate and whether dividends are cumulative or
noncumulative.
Show details in a footnote of capital stock sold during the year. Include number of shares,
consideration received, premium or discount, and expenses incurred.
Class & Series of Stock
Common
Rev 3/02
Number
of Shares
Authorized
5,000,000
Par Value
per Share
No Par
Page 13
See Accountant's Compilation Report
Outstanding per
Balance Sheet
Shares Amount
10,000 100,000
INCOME & RETAINED EARNINGS STATEMENT
Item Total Company Idaho Only
Total Operating Income (from page 15)
Total Operating Expenses (from page 17)
7100 Other Operating Income and Expense
7210 Operating Investment Tax Credits-Net
7220 Operating Federal Income Taxes
7230 Operating State and Local Income Taxes
7240 Operating Other Taxes
7250 Provision for Deferred Operating Income Taxes-Net
7200 Operating Taxes (Total)
7310 Dividend Income
7320 Interest Income
7330 Income from Sinking and Other Funds
7340 Allowance for Funds Used During Construction
7350 GainslLosses from the Disposition of Certain Propert
7360 Other Nonoperating Income
7370 Special Charges
7300 Nonoperating Income and Expense
7410 Nonoperating Investment Tax Credits-Net
7420 Nonoperating Federal Income Taxes
7430 Nonoperating State and Local Income Taxes
7440 Nonoperating Other Taxes
7450 Provision for Deferred Nonoperating Income Taxes-Net
7400 Nonoperating Taxes
7510 Interest on Funded Debt
7520 Interest Expense-Capital Leases
7530 Amortization of Debt Issuance Expense
7540 Other Interest Deductions
7500 Interest and Related Items
7610 Extraordinary Income Credits
7620 Extraordinary Income Charges
7630 Current Income Tax Effect of Extraordinary Items-Net
7640 Provision for Deferred Income Tax Effect of
Extraordinary Items-Net
7600 Extraordinary Items
7910 Income Effect of Jurisdictional Ratemaking
Differences-Net
7990 Nonregulated Net Income
AMOUNT TRANSFERRED TO RETAINED EARNINGS
Rev 3/02
629,341
984,277
29,983
(11,714)
18,269
13,524
11,094
24,618
116,483
116,483
449,358
(15,712)
Page 14
See Accountant's Compilation Report
Same as
total company
OPERATING REVENUES
Item Total Company Idaho Only
Local Network Services Revenues
5001 Basic Area Revenue
5002 Optional Extended Area Revenue
5003 Cellular Mobile Revenue
5004 Other Mobile Services Revenue
5010 Public Telephone Revenue
5040 Local Private Line Revenue
5050 Customer Premises Revenue
5060 Other Local Exchange Revenue
5069 Other Local Exchange Settlements
Network Access Services Revenues
5081 End User Revenue (SLC)
5082 Switched Access Revenue (Interstate)
5083 Special Access Revenue
5084 State Access Revenue (Intrastate)
Long Distance Network Services Revenues
5100 Long Distance Message Revenue - All
Miscellaneous Revenues
5230 Directory Revenue
5240 Rent Revenue
5250 Corporate Operations Revenue
5261 Special Billng Arrangements Revenue
5262 Customer Operations Revenue
5263 Plant Operations Revenue
5264 Other Incidental Regulated Revenue
5269 Other Revenue Settlements
5270 Carrier Billng & Collection Revenue
Uncollectible Revenues
5301 Uncollectible Revenue - Telecommunications
5302 Uncollectible Revenue - Other
TOTAL OPERATING REVENUES
Please identify the following revenues:
240,659
82,013
42,823
17,175
17,931
185,688
2,664
48,712
371
(8,695)
629,341
. To what account were they booked?NECA USF $ NONE
. To what account were they booked?State USF $ NONE
Rev 3/02 Page 15
See Accountant's Compilation Report
Same as
total company
OPERATING REVENUES
Item Total Company Idaho Only
Plant Specific Operations Expense
6110 Network Support Expenses
6112 Motor Vehicle Expense
6113 Aircraft Expense
6114 Special Purpose Vehicles Expense
6115 Garage Work Equipment Expense
6116 Other Work Equipment Expense
6120 General Support Expenses
6121 Land and Building Expenses
6122 Furniture and Artorks Expense
6123 Office Equipment Expense
6124 General Purpose Computers Expense
6210 Central Office Switching Expenses
6211 Analog Electronic Expense
6212 Digital Electronic Expense
6215 Electro-Mechanical Expense
6220 Operators System Expense
6230 Central Office Transmission Expenses
6231 Radio Systems Expense
6232 Circuit Equipment Expense
6310 Information OriginationlTermination Expense
6311 Station Apparatus Expense
6341 Large Private Branch Exchange Expense
6351 Public Telephone Terminal Equipment Expense
6362 Other Terminal Equipment Expense
6410 Cable and Wire Facilties Expenses
6411 Pole Expense
6421 Aerial Cable Expense
6422 Underground Cable Expense
6423 Buried Cable Expense
6424 Submarine Cable Expense
6425 Deep Sea Cable Expense
6426 Intrabuilding Network Cable Expense
6431 Aerial Wire Expense
6441 Conduit Systems Expense
Same as
total company5,440
14,635
17,718
76,964
120,554
24,675
TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 259,986
Rev 3/02 Page 16
See Accountant's Compilation Re~ort
OPERATING RÈVENUES
Item Total Company Idaho Only
Plant Nonspecific Operations Expense
6510 Other Propert/Plant/Equipment Expenses
6511 Propert Held for Future Telecomm. Use Expenses
6512 Provisioning Expense
6530 Network Operations Expense
6531 Power Expense
6532 Network Administration Expense
6533 Testing Expense
6534 Plant Operations Administration Expense
6535 Engineering Expense
6540 Access Expense
6560 Depreciation and Amortization Expenses
6561 Depreciation Expense-Telecom. Plant in Service
6562 Depreciation Expense-Propert Held for Future Use
6563 Amortization Expense- Tangible
6564 Amortization Expense - Intangible
6565 Amortization Expense - Other
Total Plant Nonspecific Operations Expenses
Customer Operations Expense
6610 Marketing
6611 Product Management
6612 Sales
6613 Product Advertising
6620 Services
6621 Call Completion Services
6622 Number Services
6623 Customer Services
Total Customer Operations Expense
Corporate Operations Expense
6710 Executive and Planning
6711 Executive
6712 Planning
6720 General and Administrative
6721 Accounting and Finance
6722 External Relations
6723 Human Resources
6724 I nformation Management
6725 Legal
6726 Procurement
6727 Research and Development
6728 Other General and Administrative
6790 Provision for Uncollectible Notes Receivable
Total Corporate Operations Expense
TOTAL OPERATING EXPENSES
Rev 3/02
572
2,566
1,126
176,343
334,029
514,636
13,244
315
127,412
140,971
11,343
32,642
2,560
22,139
68,684
984,277
Page 17
See Accountant's Compilation Report
Same as
total company
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4
ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
YEAR ENDED DECEMBER 31, 2007.
CUSTOMER RELATIONS RULES COMPLIANCE
Rule IDAPA 31.21.01.603
Rule IDAPA 31.41.01.105
Please provide copies of:
Summary of Customer Relations Rules for Telephone Corporations
Idaho Telephone Solicitation Act Notification
Method of Notification:
Mailed separately to customers Yes-l No_
Included in directory Yes_ No-l
Date of notification 5/1/2007
Alternate method of notification NIA
Rule IDAPA 31.41.01.403.02
Record of Complaints:
Number received by Company 22
Category of complaints (if known):
Deposit Disputes
Charges on Bil 14
Deniairrermination
Quality or Availability
of Service
Carrier SelectionlAssignment
Miscellaneous 8
Rev 3/02
Page 20
$øe .Accountant's Compilation Report
. ,CERTIFICATE
State of Idaho )
) ss
)County of Washington
WE, the undersigned RICHARD WIGGINS
and ANN E SHARP
of the CTC TELECOM, INC. utilty,
on our oath do severally say that the foregoing return has been prepared under our direction, from
the original books, papers, and records of said utility; that we have carefully examined same, and
declare the same to be a correct statement of the business affairs of said utility for the period
covered by the return in respect to each and every matter and thing therein set forth, to the best of
our knowledge, information and belief._12~~"s
(Chief OffiC'J)ti&d~(Offcer in Charge of Ãêts)
Subscribed and Sworn to Before Me this i1tJ day of ~,(Year) eJdO?~ailJ~
My Commission expires ß" ,)t/ ,(Year) A& /3 .
PEBBlE S MAELLNotary Publlc
State of Idaho
Rev 3/02 -.- ~-
gdklexcelljnelson/anulrpts/telannualrpt
Page 21
See Accountant's Compilation Report