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HomeMy WebLinkAbout2002Annual Report.pdf, ' -yl S"t~, RECEIVED mF!LED 2003 MAY -, AM 8: 1+ ANNUAL RERa~o SILVER STAR TELEPHONE COMPANY, INC. NAME 10410lHwy 89 PO Box 226 Frpp~nm , wv A11 ?O ADDRESS TO TH E IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED December 31. 2002 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 , 2002 COMPANY INFORMATION Exact name of utility: Silver Star Telephone Company, Inc. Address of principal office: O. Box 226 104101 Hwy 89, Freedom, WY 83120 Telephone Number (Area Code 307 )883-2411 Cities or towns served: Wyoming - Freedom , Etna , Alpine, Afton , Bedford; Idaho - Irwin, Wayan Name and title of officer having custody of the general corporate books of account: Allen R. Hoopes, President Address of office where corporate books are kept and phone number: O. Box 226 104101 Hwy 89, Freedom , WY 83120 (307) 883-2411 Organized under the laws of the State of: Wyoming Date of organization: 10/20/1950 Form of organization (proprietorship, association, corporation): If a Subchapter S Corporation, please specify: N/A Name and address of controlling company, if any: N/A Corporation Names of affiliated companies. Give address and description of business: Columbine Telephone Company, Inc. dba Teton Telecom; P.O. Box 226 104101 Hwy 89, Freedom WY 83120 - Telecommunications 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 Name President Allen R. Hoopes VP Operations Ron B. McCue SeclTreasurer Bonnie E. Hoopes VP Finance Chad Turner Address O. Box 226, Freedom , WY 83120 O. Box 226, Freedom , WY 83120 O. Box 226, Freedom , WY 83120 O. Box 226, Freedom , WY 83120 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. Name and Address Melvin R. Hoopes Indefinite Allen R. Hoopes Indefinite Bonnie E. Hoopes Indefinite Stephen R. Hoopes Indefinite Bradford E Hoopes Indefinite Rod R. Jensen Indefinite W. Tom Davis Indefinite Vince Zimmer Indefinite Name of Chairman of the Board: Melvin R. Hoopes Name of Secretary (or Clerk) of Board: Bonnie E. Hoopes Number of Meetings of the Board during the year: Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year $900 050 050 $250 050 050 $800 $800 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 Allen R. Hoopes Ron B. McCue Sharon Urbanik Chad H. Turner Robert S. Tanguay Karen Hicks Drew Izatt Mike Hunsacker Title General Manager VP Operations Customer Service Manager VP Finance Network Manager Engineering Manager Marketing Manager Plant Manager Wages and Bonuses Paid $102 596 $108 709 $59 546 $87 576 $64 952 $62 238 $54 224 $59 535 NOTE: These wages include all dollars paid to managers performing work for Silver Star Telephone as well as those dollars allocated to Columbine Telephone Company, dba Teton Telecom Last update 8/99 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. None Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at EndTItle of Account Of Year Of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 012 734 455 181 (557 553) 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 400 600 200 1160 Temporary Investments 198 576 174 124 (24,452) 1180 Telecommunications Accts. Receivable 494 234 955 181 460 947 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 721 957 382,416 (339 541) 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 000 (30 000) 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 266 113 344 230 117 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 223 231 161 674 (61 557) 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 285 330 045 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 684 019 684 019 1402 Investment in Nonaffiliated Companies 285 156 321 790 634 1406 Nonregulated Investments 100 594 993 522 (107 072) 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 685,428 2,412 731 727 303 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 843 116 355 000 511 884 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 653 851 220 043 566 192 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 944,706 115 811 171 105 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 296 988 20,405 030 108 042 Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginnmg at End Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 490 879 300 046 (190 833) 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 930 095 165 4050 Current Maturities - Long -Term Debt 541 000 596 000 000 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 674 510 164) 4100 Net Current Defer. Oper. Income Taxes (107 976)(152 854)(44 878) 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 521 650 603,438 788 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 581 948 387 598 805 650 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 608 118 638 700 582 4320 Unamort. Oper. Invest. Tax Credits - Net 173 518 168 184 334) 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes (372 964)(55 946)317 018 4350 Net Noncur. Defer. Nonoper. Income Taxes 171 386)(14 557) 4360 Other Deferred Credits 810 392 151 297 341 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 000 000 4520 Additional Paid-In Capital 000 000 4530 Treasury Stock 4540 Other Capital 780)(18 221)(13 441) 4550 Retained Earnings 687 010 478 715 (208 295) TOTAL LlAB. & OTHER CREDITS 296 988 20,405 030 108 042 Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 14 1 0 In t e r n e t E q u i p m e n t 13 7 82 7 96 4 21 1 1 La n d 77 3 77 3 21 1 2 Mo t o r V e h i c l e s 66 5 19 3 16 3 (3 1 , 4 0 2 ) 67 2 95 4 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 65 8 86 2 95 0 (7 , 4 5 8 ) 71 7 35 4 21 2 1 Bu i l d i n g s 1 , 69 6 08 8 82 2 69 9 91 0 21 2 2 Fu r n i t u r e 06 3 11 7 99 2 18 8 05 5 21 2 3 Of f i c e E q u i p m e n t 14 7 66 1 38 5 21 5 04 6 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 56 9 19 7 67 , 4 9 7 63 6 69 4 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 06 7 , 79 8 ?t ~ 47 S (2 8 0 21 1 ) Di g i t a l E l e c t r o n i c S w i t c h i n g P2 3 88 5 ) 68 3 17 7 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 74 2 71 3 13 2 37 6 87 5 08 9 22 3 2 Ci r c u i t E q u i p m e n t 70 5 77 6 35 8 73 8 . _ -. 1 3 2 4 85 2 ) 28 0 21 1 01 9 87 3 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 30 6 62 2 11 1 64 7 18 2 ) 41 6 08 7 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 10 6 27 5 96 5 10 8 24 0 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 82 6 82 6 26 9 0 In t a n g i b l e s 95 8 95 8 TO T A L P L A N T A C C O U N T S 84 3 11 6 20 0 83 6 (6 8 9 77 9 ) 82 7 35 5 00 0 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g Y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 14 1 0 In t e r n e t e q u i p m e n t 01 2 01 2 21 1 1 La n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 24 8 94 0 65 7 ) 24 6 28 3 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 74 8 74 8 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 28 0 21 1 (2 8 0 21 1 ) 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 06 0 06 0 22 3 2 Ci r c u i t E q u i p m e n t 33 3 09 7 14 1 73 5 (1 5 3 76 0 ) 28 0 21 1 60 1 28 3 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 85 8 88 9 16 9 95 2 05 8 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 92 8 92 8 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 81 8 88 5 23 2 24 7 (1 5 3 76 0 ) 89 7 37 2 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 14 1 0 In t e r n e t 50 7 33 . 33 % 11 4 62 1 21 1 2 Mo t o r V e h i c l e s 29 2 89 4 20 . 00 % 70 9 (1 9 90 2 ) 34 5 , 7 0 1 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 52 6 43 3 10 . 00 % 20 5 75 8 ) 59 0 88 0 21 2 1 Bu i l d i n g s 01 6 20 7 00 % 91 5 10 1 12 2 21 2 2 Fu r n i t u r e 06 3 01 5 07 8 21 2 3 Of f i c e E q u i p m e n t 13 9 01 0 14 . % - 2 0 % 64 7 15 8 65 7 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 32 4 16 1 14 . 00 % 04 2 40 9 20 3 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 21 1 52 4 33 % - 1 2 . 17 0 99 6 (2 9 6 99 9 ) 08 5 52 1 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 64 1 79 2 10 . 00 % 28 8 65 6 08 0 22 3 2 Ci r c u i t E q u i p m e n t 80 1 66 8 10 % - 1 2 . 40 4 38 6 (3 2 4 85 2 ) 88 1 20 2 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 00 % 24 2 3 Bu r i e d C a b l e 85 7 89 3 5% - 2 0 % 86 1 , 4 0 7 18 2 ) 71 7 11 8 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 47 4 00 % 33 3 80 7 26 8 2 Le a s e h o l d I m p r o v e m e n t s 00 % 74 1 74 1 TO T A L 94 4 70 6 81 9 79 8 (6 4 8 69 3 ) 11 5 81 1 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 14 1 0 I n t e r n e t 21 1 2 M o t o r V e h i c l e s 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 21 2 1 B u i l d i n g s 56 6 00 % 12 , 4 2 7 99 3 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 74 8 74 8 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 13 5 30 4 12 . 00 % 82 3 16 6 12 7 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 16 5 10 . 00 % 12 8 29 3 22 3 2 C i r c u i t E q u i p m e n t 39 7 , 4 9 8 12 . 50 % 16 8 , 4 1 3 (1 5 3 75 9 ) 41 2 15 2 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 86 1 71 1 5% - 2 0 % 51 3 05 8 37 4 76 9 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s 00 % 14 7 15 9 TO T A L 2, 4 9 3 00 4 72 9 99 6 (1 5 3 75 9 ) 06 9 24 1 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 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 may be grouped by classes. Description Cash Value - Life Ins. Rural Telephone Ban k Stock RTFC capital credits Linktel Networks Syringa Networks PCS Investments Economic Development loans Universal Rapid Access Bridgeland Wireless Columbine Telephone Co. Silver Star - Afton (CLEC) Totals . Date Acquir Various Book Cost of Investments Disposed of This year Book Cost of Investments Held at End of Year 909 945 005 1997 Various 1998 2000 Various 664 2000 1998 2001 573 520 295 838 147 052 184 716 000 684 019 993 522 999 331 Various 1999 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 YearNotes Accounts Receivable Receivable 98,408 828 988 220 521,483 075 184 117 485 541 271 355 600 Name of Company Customer billed Mountainland Communications Syringa Bridgerland Wireless NECA Interexchange Carriers State USF Columbine Telepho ne Co. Valley Wireless, LP Rocky Mountain Wireless Other Totals Rev 3/02 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Date of Note Totals Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor NECA Due Date Bricon Movza Fujitsu Five Point Communications Advanced Systems Group Corporate Benefit Computer Technology, Inc. Sprint North Supply Lower Valley Energy TCA, Inc Stern Brothers Valuation Advisors Various other vendors Totals Rev 3/02 Page 11 Face Amount Amount 126 907 745 002 194 564 093 923 359 930 679 675 125 975 307 171 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m / D i s c o u n t Cl a s s & S e r i e s Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i at i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d Ra t e Am o u n t RU S N o t e Ju n - 20 0 9 30 1 22 1 00 % 11 0 RU S N o t e Ma r - 20 1 5 68 9 00 0 64 2 32 4 00 % 01 5 RU S N o t e De c - 20 2 5 18 8 00 0 02 8 23 4 00 % 54 , 4 5 1 RU S N o t e De c - 20 0 9 35 0 00 0 23 6 42 5 57 % 38 0 RU S N o t e De c - 20 0 9 86 4 34 5 58 5 56 4 75 % 66 9 RU S N o t e De c - 20 0 9 19 0 65 5 12 9 69 9 96 % 51 2 RT B N o t e De c - 20 0 9 82 0 05 0 54 0 39 0 54 % 25 1 RT F C L O C 73 2 00 0 12 7 00 0 75 % 18 9 80 1 RT F C N o t e Oc t - 20 1 6 26 3 15 8 51 8 , 7 2 3 50 % 14 1 06 7 FC C N o t e Ju l - 20 0 7 59 6 60 8 25 % 68 2 AI . C r e d i t C o r p . 71 1 53 3 77 % , 1 2 7 Fo r d C r e d i t Oc t - 20 0 4 11 0 75 5 68 4 00 % GM A C Oc t - 20 0 5 29 8 22 6 00 % We s t e r n S t a t e s E q u i p m e n t De c - 20 0 4 45 0 96 7 00 % Ru r a l E c o n o m i c D e v . N o t e 30 0 00 0 30 0 00 0 00 % Le s s c u r r e n t p o r t i o n (5 9 6 00 0 ) To t a l 38 7 59 8 61 0 06 5 De f e r r e d C o m g e n s a t i o n 63 8 70 0 Re v 3 / 0 2 Pa g e 1 2 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 Stock Voting Common Stock Non-Voting Number of Shares Authorized 000 000 Par Value per Share Outstanding per Balance Sheet Shares Amount 500 500 500 500 TOTAL 100 000 000 000 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-Net7200 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 Charges7300 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-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 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-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 302 198 598 040 024) 220 948 395 214 901 511 220 877 766 324 (76,472) (15,436) (33 941) (26 368) (237) 482 (14 123) 458 450 375 460 825 490 955 203 250 Page 14 762 924 817 310 024) (745) 763 138 132 897 447 (22 010) (15 666) (23 267) (237) 115 389) 220 701 220 724 316 (301 203) 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 Please identify the following revenues: NECA USF $ 126.272 014 367 220 201 584 344 (469) 941 (856) 32,424 147 895 253 345 249 463 316 277 868 248 300 271 546 417 021 996 783 329 073 593 020 337 316 72,403 214 120 194 117 013 587 (19 858)(367) 109)(1,493) 302 198 762 924 . To what account were they booked?5069, State USF $ 168.158 . To what account were they booked?5069. 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 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 Artworks 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 Facilities 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 TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 731 123 257 536 268 116 751 307 926 140 861 298 575 544 922 790 150 132 846 335 116 474 912 213 750,410 255 521 816 610 515 633 Page 16 Item OPERATING REVENUES 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 Rev 3/02 38,410 568 116 665 923 531 819 059 077 156 983 518 503 283 036 381 056 120 188 784 254 971 76,775 926 283 719 733 572 323 218 598 040 Page 17 911 982 560 839 920 729 996 842 208 889 670 633 508 704 755 589 493 845 732 (268) 857 239 762 382 765 817 310 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 20 0 2 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c No n e Pr e f i x ( e s ) : Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e Ac c e s s L i n e C a p a c i t y De s i g n : 57 4 48 3 (c o n e n t r a t o r s s e r v e d b y F r e e d o m , W Y s w i t c h ) Ty p e : Ch e c k o n e : Di g i t a l An a l o g - In s t a l l e d / E q u i p p e d : Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Re s i d e n c e Si n gl e L i n e Mu l t i - Pa r t y Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Mu l t i - Li n e Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C , Di a l T o n e f r o m a n o t h e r C . Pa r t y 46 8 46 3 Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s 60 3 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Pu b l i c T e l e p h o n e L i n e s : Co m p a n y O f f i c i a l L i n e s : Co m p a n y T e s t L i n e s : Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e NA R . pa r t y pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 46 8 14 5 14 5 61 3 46 3 14 0 14 0 60 3 Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : 16 0 Pa g e 1 8 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S DU R I N G 2 0 0 2 . To l l C a l l s O r i a i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . l In t r a s t a t e In t e r s t a t e To t a l Li n e Lo c a l C a l l s Nu m b e r Av g . l (1 0 0 0 s ) Li n e 18 7 15 3 14 9 Av e r a g e # of C u s t o m e r Li n e s i n U s e Lo c a l E x c h a n g e 48 3 Ir w i n 57 4 10 1 69 3 23 7 66 3 26 7 25 1 76 4 96 0 Pa g e 1 9 Re v 3 / 0 2 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2002. 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 No~ Included in directory Yes~ Date of notification Jul:y 2002 Alternate method of notification Rule IDAPA 31.41.01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill DeniallTermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 !t/~/ State Of~:' tf - - . / ) ss County Of ~/K- CERTIFICATE , the undersigned Allen R. Hoopes and Chad Turner Silver Star Telephone Company, Inc.utility,of the 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 ;2 d~., (Chief Officer) our knowledge , information and belief. t!J 7:M1A- (Officer in Charge of Accounts) Subscribed and Sworn to Before Me thiS~ay , (Year)JtJO3 8IICHLLE MOTZKU5-NOTARY PUIUC I8111'\'OF SfATlCIJILINCOLN WYCIII8II MY r~' '~'ISSION EXPIRES 1J My Commission expires , (Year) Rev 3/02 gd kI excel/j n el sonIa nul rpts/tela n n u a I rpt Page 21