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Home My WebLink About2011Annual Report.pdfDC1M-T I RECEIVED 2012 APR 18 AM 8:31 ANNUAL REP0-R,:,-`,T-,-i, `SSI O OF DIRECT COMMUNICATIONS ROCKLAND INC. NAME ADDRESS TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDED 2011 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING December 31, 2011 RECEIVED COMPANY INFORMATION 22 PR 18 AM 8: 2i aA-iO PUBLIC Exact name of utility: DIRECT COMMUNICATIONS ROCKLAND, INC UTILIIIES 041M 5 I 0N Address of principal office: 150 South Main Rockland, Idaho 83271 Telephone Number (Area Code208 ) 548 - 2345 Cities or towns served: Rockland, Arbon, Paris, Bloomington, St. Charles, & Fish Haven Name and title of officer having custody of the general corporate books of account: Leonard May, President Address of office where corporate books are kept and phone number: 150 South Main Rockland, Idaho 83271 (208) 548 - 2345 Organized under the laws of the State of: Idaho Date of organization:: 1973 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: Name and address of controlling company, if any: Names of affiliated companies. Give address and description of business: Direct Communciations Cable, 150 South Main Rockland, Idaho 83271, Non-reg Telecommunications Direct Communciations Cedar Valley, 150 South Main Rockland, Idaho 83271, ILEC 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 Name Address President - Treasurer Leonard May P.O. Box 269 Rockland, Idaho 83271 Vice Pres. - Secretary Marilyn May P.O. Box 269 Rockland, Idaho 83271 General Manager Jeremy Smith P.O. Box 269 Rockland, Idaho 83271 Rev 3/02 Page 1 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.) Term Expired or Current Term Meetings Attended Name Will Expire This year and Address Leonard May Rockland ID May-11 12 Marilyn May Rockland ID May-Il 12 Garrin Bott Rockland ID May-il 12 Kip Wilson Rockland ID May-1 1 12 Jeremy Smith Rockland ID May-1 1 12 Scott Hendrickson May-1 1 12 RocklandID Fees Paid During Year Name of Chairman of the Board: LeonardMay Name of Secretary (or Clerk) of Board: MarilynMay Number of Meetings of the Board during the year: ---12 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 Leonard May President - Treasurer Information is Confidential Marilyn May Vice Pres. - Secretary Jeremy Smith General Manager Rev 3/02 Page 2 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 property 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. New softswitches were installed in the Rockland & Paris central offices. The old switch has been removed and retired in FY20 11. The remaining legacy swith in Rockland will be fully removed and retired in FY2012. Rev 3/02 Page 3 471,208 10,160 500 102,897 92,881 (6,000) 614,007 (49,000) 633,691 10,180 300 502,774 627,213 (6,900) 3,354 (70,600) 60,295 107,879 76,333 70,000 5,500 23,108 18,632 5,707 30,000 30,000 3,126,694 3,156,316 1,678 - 9,787 9,787 59,044 29,525,947 25,249,504 88,149 33,807 1,241,866 4,966,851 17,463,259 16,847,121 1,161,164 1,735,689 BALANCE SHEET Assets and Other Debits 16,896,383 16,729,934 Title of Account Current Assets 1120 Cash and Equivalents 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 1406 Nonregulated Investments 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 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 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS Increase or (Decrease) 162,483 20 0 (31,546) 0 0 (64,500) (4,476) 0 5,707 0 0 29,622 0 (1,678) 0 0 0 0 (59,044) 0 0 (4,276,443) 0 (54,342) 0 0 3,724,985 0 0 (616,138) 0 574,525 0 0 0 0 0 0 408,076 balance balance Beginning at End of Year of Year Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End or of Year of Year (Decrease) 160,535 284,721 124,186 0 29,693 30,926 1,233 0 1,621,529 1,514,239 (107,290) 0 0 35,000 31,754 (3,246) 0 0 60,197 92,535 32,339 0 0 8,552,538 8,581,304 28,766 0 0 0 0 0 1,342,468 (1,342,468) 0 0 0 0 1,422,135 1,590,372 168,237 0 0 0 0 439,555 439,555 (0) 0 0 0 3,229,622 4,164,528 934,906 0 16,893,273 16,729,934 (163,338) Title of Account Current Liabilities 4010 Accounts Payable 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 4050 Current Maturities - Long -Term Debt 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated 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 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings TOTAL LIAB. & OTHER CREDITS Rev 3/02 Page 5 ANALYSIS OF TELECOMMUNICATIONS PLANT IN SERVICE TOTAL Company Basis Balance Plant Transfers Balance Beginning Additions Retired and End of Year During year or Sold Adjustments of Year 192,320 192,320 517,984 50,526 45,932 522,578 118,080 9,500 127,580 17,415 17,415 781,449 6,072 787,521 2,260,768 2,260,768 72,090 72,090 36,055 36,055 153,656 96,340 249,996 3,465,553 231,686 1,627,709 2,069,530 13,886 13,886 3,955,188 228,823 4,184,011 17,471,153 304,834 17,775,987 1,241,866 1,241,866 491,715 491,715 30,297,463 927,781 1,673,641 0 30,043,318 Analysis of Telecommunications Plant in Service 2111 Land 2112 Motor Vehicles 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles Non-regulated Telephone Plant TOTAL PLANT ACCOUNTS Rev 3/02 Page 6 ANALYSIS OF TELECOMMUNICATIONS PLANT ACCOUNTS IDAHO Operations Only Balance Plant Transfers Balance Beginning Additions Retired and End of Year During Year or Sold Adjustments of Year Analysis of Telecommunications Plant in Service 2111 Land 2112 Motor Vehicles 2113 Aircraft 2114 2115 Special Purpose Vehicles Garage Work Equipment SAME AS TOTAL 2116 Other Work Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment COMPANY 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNTS Rev 3/02 Page 7 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 TOTAL Company Basis Balance Credits Retirements Balance Beginning Depreciation During and End of Year Rate* Year Adjustments of Year Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 405,326 25.0% 60,328 43,932 421,722 2113 Aircraft 0 2114 Special Purpose Vehicles 94,504 10.0% 12,282 106,786 2115 Garage Work Equipment 12,495 11.0% 1,916 14,411 2116 Other Work Equipment 597,221 12.5% 97,991 695,212 2121 Buildings 740,966 3.0% 67,823 808,789 2122 Furniture 69,911 12.5% 2,178 72,089 2123 Office Equipment 31,715 12.5% 4,341 36,056 2124 General Purpose Computers 124,306 20.0% 40,510 164,816 2211 Analog Electronic Switching 0 2212 Digital Electronic Switching 2,582,359 12.0% 121,205 1,591,964 1,111,600 2215 Electro-Mechanical Switching 0 2220 Operator Systems 0 2231 Radio Systems 13,887 13,887 2232 Circuit Equipment 2,146,011 10.0% 269,245 2,415,256 2311 Station Apparatus 0 2321 Customer Premises Wiring 0 2341 Large Private Branch Exchanges 0 2351 Public Telephone Terminal Equipment 0 2362 Other Terminal Equipment 0 2411 Poles 0 2421 Aerial Cable 0 2422 Underground Cable 0 2423 Buried Cable 10,306,326 6.5% 647,599 10,953,925 2424 Submarine Cable 0 2426 lntrabuilding Network Cable 0 2431 Aerial Wire 0 2441 Conduit Systems 0 Non-regulated Telephone Plant 338,232 62,630 400,862 TOTAL 17,125,027 1,325,418 1,635,896 17,215,411 *Please list individual depreciation rate for each account. Rev 3/02 Page 8 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 IDAHO Operations Only Balance Credits Retirements Balance Beginning Depreciation During and End of Year Rate* Year Adjustments of Year Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems TOTAL *Please list individual depreciation rate for each account. SAME AS TOTAL COMPANY Rev 3/02 Page 9 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 maybe grouped by classes. Description Date Acquired RTFC CERTIFICATES & NRTC 1993,94,&96 INDEPENDENT CABLE SYSTErv 2003 CEDAR VALLEY 2004 SYRINGA NETWORK 2000 ANPI & SOLEX 2002 NEWSTREETS, INC. 2002 SYRINGA WIRELESS 2006 Totals Book Cost of Book Cost of Investments Investments Disposed of Held at This year End of Year 257,522 94,326 586,450 1,791,833 17,800 20,000 1,044,396 3,812,327 RECEIVABLES 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. Amount at End of Year Notes Accounts Name of Company Receivable Receivable CUSTOMERS 87,882 INTEREXCHANGE CARRIERS AND OTHERS 542,685 Totals 0 630,567 Rev 3/02 Page 10 2324950 IllillIllilIlIll NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Interest Name of Creditor Date of Note Rate Due Date Face Amount Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Amount SEE ATTACHED LISTING Totals 0.00 Rev 3/02 Page 11 LONG - TERM DEBT Accounts 4210, 4240, 4250, 4260, 4270 and 4310 List the required data for each obligation included in these accounts, grouping them by account number and showing totals for each account. If any obligations mature serially or otherwise at various dates, give particulars in a note. Date Date Fact Premium! Discount Class & Series of of Amount Outstanding Year Interest for year of Obligation Issue Maturity Authorized Year-End Total Amortized Rate Amount RTFC 1995 Varies 4,805,901 1,042,087 VARIES 114,866 RUS 1979 Varies 6,689,004 5,629,010 Varies 307,943 RTB 2002 2017 3,143,699 1,856,347 Varies 105,260 FORD CREDIT 2006 2012 50,986 30,009 8.94% 873 TOYOTA 2008 2012 57,253 5,527 7.70% 913 GMAC 2008 2012 27,887 9,703 0.00% 0 ZIONS BANK 2006 2011 1,380,772 987,245 VARIES 21,813 FARM CREDIT LEASING 2009 2011 614,913 332,340 VARIES 29,072 LEONARD MAY MAPCOM Mid America Computer 2010 2011 2011 2011 2015 2013 66024 137,374 64,995 37488 119,748 46039 6% 4.79% 5.00% 918 Rev 3/02 Page 12 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. Number Outstanding per of Shares Par Value Balance Sheet Class & Series of Stock Authorized per Share Shares Amount COMMON VOTING STOCK 100,000 12,500 43,956 COMMON NONVOTING STOCK 900,000 112,500 395,600 Rev 3/02 Page 13 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 Gains/Losses from the Disposition of Certain Property 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 4,175,726 4,280,543 10 51,086 193,757 244,853 (11,434) (11,927) 0 6,105 33,880 16,624 528,068 23,534 551,602 (1,103,973) 186,076 SAME AS TOTAL Rev 3/02 Page 14 343,546 37,177 83,589 3,083,259 160,034 388,193 65,680 9,307 4,941 4,175,726 SAME AS TOTAL 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 Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue -Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES 5082.22 Please identify the following revenues: NECA USE $ 647,732 To what account were they booked? State USF $202,401 To what account were they booked? 5084.60 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense SAME 6114 Special Purpose Vehicles Expense AS 6115 Garage Work Equipment Expense TOTAL 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 65,317 6122 Furniture and Artworks Expense 3,312 6123 Office Equipment Expense 6124 General Purpose Computers Expense 202,395 6210 Central Office Switching Expenses 141,945 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 3,073 6232 Circuit Equipment Expense 173,171 6310 Information Origination/Termination 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 Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 1,120,265 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 1,709,477 Rev 3/02 Page 16 OPERATING REVENUES Item Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property 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-Property 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 Information 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 SAME 9,572 AS 38,560 TOTAL 128,500 39,111 28,108 62,630 1,288,546 1,595,028 9,040 589 325,613 335,242 276,856 274,099 249 419 2,338 86,835 640,796 4,280,543 Rev 3/02 Page 17 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office: ROCKLAND Prefix (es):548 Central Office Switch Type:____ Metaswitch - Host Check all that apply: Check one: Check one: Stand Alone X Digital X Electronic X Host _x_ Analog Electro-Mechanical_ Remote_ Other:_Softswitch_ AccessLineCapacity Design:— 400 Installed/Equipped: 300 Classification of Customer Access Access Lines in Use Customer Lines: 244 (Include Centrex, PAL, Semi-Pub.) Public Telephone Lines 0 Company Official Lines -1 i_ Company Test Lines -0— Residence Multi- SingleLine Line Multi- Subtotal Centrex 1-Party 1-Party Party Residence N.A.R. Beginning 182 182 New Connects 10 10 Disconnects 20 20 End of Year 172 172 Business Multi- Single Line Line Multi- Subtotal 1-Party 1-Party Party Business 12 49 61 0 18 18 0 7 7 12 60 72 Total Residence & Business 243 28 27 ')AA Foreign Exchange: Directory Listings: Dial Tone from this C.O.: 0 Number of Customers with Nonpublished or Nonlisted: 9 Dial Tone from another C.O.:0 Custom Calling: Number of customers with at least one feature: 135 Total number of features subscribed to:34 Rev 3/02 Page 18 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office: PARIS Prefix (es):945 Type: METASWITCH Check one: Check one: Digital X Electronic X Analog_ Electro-Mechanical__ Other:_Softswitch_ AccessLines inUse Customer Lines:706 (Include Centrex, PAL, Semi-Pub.) Central Office Switch Check all that apply: Stand AloneX Host Remote X Access Line Capacity Design: 2000 Installed/Equipped:_ 1000 Public Telephone Lines0 Company Official Lines-7 Company Test Lines-0- Classification of Customer Access Residence Multi- Single Line Line Multi- Subtotal Centrex 1-Party 1-Party Party Residence N.A.R. Beginning of Year 644 644 New Connects 49 49 Disconnects 89 89 End of Year 604 604 Business Multi- Single Line Total Line Multi- Subtotal Residence I -Party 1-Party Party Business & Business 26 64 90 734 10 29 39 88 8 19 27 116 28 74 102 706 Foreign Exchange: Directory Listings: Dial Tone from this C.O.:I Number of Customers with Nonpublished or Nonlisted:_46 Dial Tone from another C.O.: 0 Custom Calling: Number of customers with at least one feature: 380 Total number of features subscribed to: 34 Rev 3/02 Page 18 Business Multi- SingleLine Centrex Line Multi- N.A.R. 1-Party 1-Party Party 5 5 2 6 5 Total Subtotal Residence Business & Business 10 101 2 5 1 3 11 103 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office: ARBON Prefix (es):335 Type: AZTEK Check one: Check one: Digital X ElectronicX Analog_ Electro-Mechanical Other:___________________ Access Lines in Use Customer Lines: 103 (Include Centrex, PAL, Semi-Pub.) Central Office Switch Check all that apply: Stand AloneX Host RemoteX Access Line Capacity Design:_ 300 lnstalled/Equipped:_100 Public Telephone Lines 0 Company Official Lines 2 Company Test Lines -0— Classification of Customer Access Residence Multi- SingleLine Line Multi- Subtotal 1-Party 1-Party Party Residence Beginning of Year 91 91 New Connects 3 3 Disconnects 2 2 End of Year 92 92 Foreign Exchange: Dial Tone from this C.O.:0 Dial Tone from another C.O.:0 Custom Calling: Number of customers with at least one feature: 61 Total number of features subscribed to: 34 Directory Listings: Number of Customers with Nonpublished or Nonlisted:_9_ Rev 3/02 Page 18 NUMBER OF CALLS COMPLETED BY CUSTOMERS DURING (Year) 2011 Average # Local Calls Toll Calls Originated (Total of all Carriers) of Customer Number Avg.! Avg.! Local Exchange Lines in Use (1000s) Line Intrastate Interstate Total Line I ARBON 99 6,402 22,222 28,624 289 2ROCKLAND 243 15,649 49,706 65,355 269 3 PARIS A 709 26,581 196,002 222,583 314 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Rev 3!02 Page 19 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2011 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 Included in directory YesX No_____ Date of notification Jan-1 1 Alternate method of notification Letter included w/January statements Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ss County of ) WE, the undersigned Jeremy Smith and R. Michael Parrish_____________________________________________________ of the Direct Communications Rockland, Inc. utility, 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. OT4\ / '1J8LIG / (Accountant) Subscribed and Sworn to Before Me this —1 6— day of _April_, _2012. _ Notary Public My Commission expires 40.& /1 , (Year) 1 Rev 3/02 gdk/excel/jneison/anulrpts/teiannualrpt Page 21