Nuvera Communications, Inc 10-Q for FY2022 Q3

Nuvera Communications, Inc. (NUVR)

10-Q 2022-11-09 For: 2022-09-30

Added on April 06, 2026

About this 10-Q

Nuvera Communications, Inc filed this 10-Q on November 9, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $16.48M; up 0.6% from $16.38M a year earlier
Net income: $1.82M; down 18.8% from net income of $2.25M a year earlier
Diluted EPS: $0.36; down 16.3% from $0.43 a year earlier

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Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock - $1.66 par value	NUVR	OTCQB Marketplace

PART I – FINANCIAL INFORMATION

Item 1	Financial Statements	3 - 9

	Consolidated Statements of Income (unaudited) for the Three and Nine Months Ended September 30, 2022 and 2021	3

	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2022 and 2021	4

	Consolidated Balance Sheets (unaudited) as of September 30, 2022 and December 31, 2021	5 -6

	Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2022 and 2021	7

	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Nine Months ended September 30, 2022 and 2021	8-9

	Condensed Notes to Consolidated Financial Statements (unaudited)	10- 30

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30 - 43

Item 3	Quantitative and Qualitative Disclosures about Market Risk	43

Item 4	Controls and Procedures	43

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	44

Item 1A	Risk Factors	44 - 50

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	51

Item 3	Defaults upon Senior Securities	51

Item 4	Mine Safety Disclosures	51

Item 5	Other Information	52

Item 6	Exhibits Listing	52

	Signatures	53

	Exhibits

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
OPERATING REVENUES:
Voice Service	$	1,404,890	$	1,543,749	$	4,321,047	$	4,639,793
Network Access		1,190,870		1,333,767		3,685,145		4,260,892
Video Service		3,126,733		3,186,355		9,446,613		9,452,955
Data Service		6,797,329		6,434,544		20,288,217		19,071,081
A-CAM/FUSF		2,952,651		2,919,496		8,737,738		8,841,657
Other Non-Regulated		1,008,654		966,694		2,917,502		3,083,412
Total Operating Revenues		16,481,127		16,384,605		49,396,262		49,349,790

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,677,595		3,338,967		10,770,036		10,091,585
Cost of Video		2,505,185		2,595,189		7,604,067		8,051,667
Cost of Data		997,843		923,944		3,098,866		2,767,166
Cost of Other Nonregulated Services		393,212		384,662		1,181,518		1,147,930
Depreciation and Amortization		3,520,963		3,174,698		10,512,317		9,370,552
Selling, General and Administrative		2,264,090		2,509,874		7,571,025		7,728,530
Total Operating Expenses		13,358,888		12,927,334		40,737,829		39,157,430

OPERATING INCOME		3,122,239		3,457,271		8,658,433		10,192,360

OTHER (EXPENSE) INCOME
Interest Expense		(1,083,162)		(522,832)		(2,106,225)		(1,616,031)
Interest/Dividend Income		24,132		22,235		260,540		182,065
Interest During Construction		106,229		21,957		199,069		42,227
Gain on PPP Loan Forgiveness		-		-		-		2,912,433
Gain on Investments		217,876		-		217,876		-
CoBank Patronage Dividends		-		-		567,468		625,490
Other Investment Income		144,140		139,833		431,517		244,776
Total Other Income (Expense)		(590,785)		(338,807)		(429,755)		2,390,960

INCOME BEFORE INCOME TAXES		2,531,454		3,118,464		8,228,678		12,583,320

INCOME TAXES		708,806		873,168		2,304,023		2,714,400

NET INCOME	$	1,822,648	$	2,245,296	$	5,924,655	$	9,868,920

NET INCOME PER SHARE
Basic	$	0.36	$	0.43	$	1.16	$	1.90
Diluted	$	0.36	$	0.43	$	1.16	$	1.89

DIVIDENDS PER SHARE	$	0.1400	$	0.1400	$	0.4200	$	0.4100

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,084,578		5,208,491		5,091,391		5,207,341
Diluted		5,115,477		5,219,374		5,112,358		5,216,453

The accompanying notes are an integral part of these consolidated financial statements.

NUVERA COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

Net Income	$	1,822,648	$	2,245,296	$	5,924,655	$	9,868,920

Other Comprehensive Gain:
Unrealized Gains on Interest Rate Swaps		765,646		202,791		3,239,407		1,195,182
Income Tax Expense Related to Unrealized Gains on Interest Rate Swaps		(218,515)		(57,877)		(924,526)		(341,105)
Other Comprehensive Gain:		547,131		144,914		2,314,881		854,077

Comprehensive Income	$	2,369,779	$	2,390,210	$	8,239,536	$	10,722,997

The accompanying notes are an integral part of these consolidated financial statements.

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	September 30, 2022		December 31, 2021
	September 30, 2022		December 31, 2021
CURRENT ASSETS:
Cash	$	2,462,859	$	2,306,149
Receivables, Net of Allowance for Doubtful Accounts of $120,000 and $80,000		3,195,400		2,426,009
Income Taxes Receivable		-		1,405,622
Materials, Supplies, and Inventories		17,663,681		5,357,380
Prepaid Expenses and Other Current Assets		2,142,376		1,886,810
Total Current Assets		25,464,316		13,381,970

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		16,851,314		18,315,567
Other Investments		10,919,774		10,417,563
Right of Use Asset		1,273,044		1,154,293
Financial Derivative Instruments		2,356,042		-
Other Assets		432,768		422,427
Total Investments and Other Assets		81,735,971		80,212,879

PROPERTY, PLANT & EQUIPMENT:
Communications Plant		210,019,474		189,990,012
Other Property & Equipment		28,602,655		27,439,201
Video Plant		11,360,299		11,306,071
Total Property, Plant and Equipment		249,982,428		228,735,284
Less Accumulated Depreciation		156,565,487		147,585,930
Net Property, Plant & Equipment		93,416,941		81,149,354

TOTAL ASSETS	$	200,617,228	$	174,744,203

The accompanying notes are an integral part of these consolidated financial statements

Nuvera Communications, Inc 10-Q for FY2022 Q3

About this 10-Q

Headline figures

NUVERA COMMUNICATIONS, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

See Consolidated Statements of Income (for discussion below)

Other Income (Expense) and Interest Expense

Income Taxes

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (continued) (Unaudited)

LIABILITIES AND STOCKHOLDERS' EQUITY

	September 30, 2022		December 31, 2021
	September 30, 2022		December 31, 2021
CURRENT LIABILITIES:
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees	$	-	$	4,511,844
Accounts Payable		3,805,448		3,244,472
Accrued Income Taxes		643,401		-
Other Accrued Taxes		186,652		260,013
Deferred Compensation		62,982		63,829
Accrued Compensation		2,070,591		2,122,436
Other Accrued Liabilities		1,818,874		634,247
Total Current Liabilities		8,587,948		10,836,841

LONG-TERM DEBT, Net of Unamortized Loan Fees		67,634,811		43,114,772

NONCURRENT LIABILITIES:
Loan Guarantees		182,942		222,464
Deferred Income Taxes		20,409,026		19,484,500
Unrecognized Tax Benefit		42,775		42,775
Other Accrued Liabilities		1,252,637		1,112,343
Financial Derivative Instruments		-		883,365
Deferred Compensation		367,297		396,548
Total Noncurrent Liabilities		22,254,677		22,141,995

COMMITMENTS AND CONTINGENCIES		-		-

STOCKHOLDERS' EQUITY:
Preferred Stock - $1.66 Par Value, 10,000,000 Shares Authorized, None Issued		-		-
Common Stock - $1.66 Par Value, 90,000,000 Shares Authorized, 5,084,578 and 5,210,053 Shares Issued and Outstanding		8,474,297		8,683,422
Accumulated Other Comprehensive Gain (Loss)		1,683,628		(631,253)
Unearned Compensation		278,324		259,620
Retained Earnings		91,703,543		90,338,806
Total Stockholders' Equity		102,139,792		98,650,595

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	200,617,228	$	174,744,203

The accompanying notes are an integral part of these consolidated financial statements.

NUVERA COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended
	September 30, 2022		September 30, 2021
	September 30, 2022		September 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	5,924,655	$	9,868,920
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		10,627,533		9,444,469
PPP Loan Forgiveness		-		(2,912,433)
Unrealized Gains on Investments		(217,876)		-
Undistributed Earnings of Other Equity Investments		(408,613)		(262,423)
Noncash Patronage Refund		(133,467)		(149,586)
Stock Issued in Lieu of Cash Payment		300,507		252,968
Distributions from Equity Investments		210,917		150,000
Stock-based Compensation		81,273		153,200
Changes in Assets and Liabilities:
Receivables		130,198		(86,498)
Income Taxes Receivable		1,405,622		439,401
Materials, Supplies and Inventories		13,252		(250,896)
Prepaid Expenses		(68,097)		(752,191)
Other Assets		(11,588)		(108,661)
Accounts Payable		358,289		529,947
Accrued Income Taxes		643,401		-
Other Accrued Taxes		(73,361)		(66,604)
Other Accrued Liabilities		1,154,325		(121,179)
Deferred Compensation		(30,098)		(229,872)
Net Cash Provided by Operating Activities		19,906,872		15,898,562

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(22,407,662)		(11,859,569)
Materials and Supplies for Construction		(12,319,553)		(2,811,799)
Other, Net		7,304		(63,000)
Net Cash Used in Investing Activities		(34,719,911)		(14,734,368)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(57,330,775)		(3,457,800)
Loan Proceeds		56,063,223		-
Loan Origination Fees		(1,055,773)		-
Changes in Revolving Credit Facility		22,216,303		-
Grants Received for Construction of Plant		396,360		724,465
Repurchase of Common Stock		(3,187,500)		(167,467)
Dividends Paid		(2,132,089)		(2,135,027)
Net Cash Provided by (Used in) Financing Activities		14,969,749		(5,035,829)

NET CHANGE IN CASH		156,710		(3,871,635)

CASH at Beginning of Period		2,306,149		8,617,660

CASH at End of Period	$	2,462,859	$	4,746,025

Supplemental cash flow information:
Cash paid for interest	$	925,530	$	1,715,087
Net cash paid for income taxes	$	255,000	$	2,275,000

Certain historical numbers have changed to conform with the current year's presentation.

The accompanying notes are an integral part of these consolidated financial statements.

NUVERA COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)

	THREE MONTHS ENDED SEPTEMBER 30, 2022
	Common Stock			Accumulated Other Comprehensive Income (Loss)		Unearned Compensation		Retained Earnings		Total Equity


	Shares	Amount

BALANCE on June 30, 2022	5,084,578	$	8,474,297	$	1,136,497	$	272,234	$	90,530,833	$	100,413,861

Restricted Stock Grant							34,882				34,882
Non-Cash, Share-Based Compensation							(28,792)		61,903		33,111
Repurchase of Common Stock											-
Net Income									1,822,648		1,822,648
Dividends									(711,841)		(711,841)
Unrealized Gain on Interest Rate Swap					547,131						547,131

BALANCE on September 30, 2022	5,084,578	$	8,474,297	$	1,683,628	$	278,324	$	91,703,543	$	102,139,792


	THREE MONTHS ENDED SEPTEMBER 30, 2021
	Common Stock			Accumulated Other Comprehensive Income (Loss)		Unearned Compensation		Retained Earnings		Total Equity


	Shares	Amount
BALANCE on June 30, 2021	5,212,491	$	8,687,486	$	(1,235,348)	$	225,586	$	87,226,467	$	94,904,191

Restricted Stock Grant							33,256				33,256
Repurchase of Common Stock	(4,000)		(6,667)						(88,733)		(95,400)
Net Income									2,245,296		2,245,296
Dividends									(729,188)		(729,188)
Unrealized Gain on Interest Rate Swap					144,914						144,914

BALANCE on September 30, 2021	5,208,491	$	8,680,819	$	(1,090,434)	$	258,842	$	88,653,842	$	96,503,069

The accompanying notes are an integral part of these consolidated financial statements.

NUVERA COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)

	NINE MONTHS ENDED SEPTEMBER 30, 2022
	Common Stock			Accumulated Other Comprehensive Income (Loss)		Unearned Compensation		Retained Earnings		Total Equity


	Shares	Amount

BALANCE on December 31, 2021	5,210,053	$	8,683,422	$	(631,253)	$	259,620	$	90,338,806	$	98,650,595

Directors' Stock Plan	19,818		33,030						354,412		387,442
Employee Stock Plan	4,676		7,793						92,741		100,534
Restricted Stock Grant							19,371				19,371
Non-Cash, Share-Based Compensation									61,903		61,903
Exercise of RSU's	31		52				(667)		615		-
Repurchase of Common Stock	(150,000)		(250,000)						(2,937,500)		(3,187,500)
Net Income									5,924,655		5,924,655
Dividends									(2,132,089)		(2,132,089)
Unrealized Gain on Interest Rate Swap					2,314,881						2,314,881

BALANCE on September 30, 2022	5,084,578	$	8,474,297	$	1,683,628	$	278,324	$	91,703,543	$	102,139,792


	NINE MONTHS ENDED SEPTEMBER 30, 2021
	Common Stock			Accumulated Other Comprehensive Income (Loss)		Unearned Compensation		Retained Earnings		Total Equity


	Shares	Amount
BALANCE on December 31, 2020	5,200,689	$	8,667,816	$	(1,944,511)	$	149,100		80,748,301	$	87,620,706

Directors' Stock Plan	8,400		14,000						185,920		199,920
Employee Stock Plan	4,594		7,657						101,083		108,740
Restricted Stock Grant							153,200				153,200
Exercise of RSU's	1,836		3,060				(43,458)		40,398		-
Repurchase of Common Stock	(7,028)		(11,714)						(155,753)		(167,467)
Net Income									9,868,920		9,868,920
Dividends									(2,135,027)		(2,135,027)
Unrealized Gain on Interest Rate Swap					854,077						854,077

BALANCE on September 30, 2021	5,208,491	$	8,680,819	$	(1,090,434)	$	258,842	$	88,653,842	$	96,503,069

The accompanying notes are an integral part of these consolidated financial statements.

	Three Months Ended September 30, 2022				Three Months Ended September 30, 2021				Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	Three Months Ended September 30, 2022				Three Months Ended September 30, 2021				Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	1,822,648	$	1,822,648	$	2,245,296	$	2,245,296	$	5,924,655	$	5,924,655	$	9,868,920	$	9,868,920

Weighted-average common shares outstanding		5,084,578		5,115,477		5,208,491		5,219,374		5,091,391		5,112,358		5,207,341		5,216,453

Net income per share	$	0.36	$	0.36	$	0.43	$	0.43	$	1.16	$	1.16	$	1.90	$	1.89

	Three Months Ended September 30,
	2022		2021
Voice Service¹	$	1,550,057	$	1,733,383
Network Access¹		1,224,952		1,345,501
Video Service¹		3,126,733		3,185,970
Data Service¹		6,209,861		5,897,494
Directory²		165,094		181,626
Other Contracted Revenue³		683,973		658,867
Other⁴		317,974		263,980

Revenue from customers		13,278,644		13,266,821

Subsidy and other revenue outside scope of ASC 606⁵		3,202,483		3,117,784

Total revenue	$	16,481,127	$	16,384,605

¹ Month-to-Month contracts billed and cosumed in the same month.

² Directory revenue is contracted annually, however, this revenue is recognized monthly over the contract period as the advertising is used.

³ This includes long-term contracts where the revenue is recognized monthly over the term of the contract.

⁴ This includes CPE and other equipment sales.

⁵ This includes governmental subsidies and lease revenue outside the scope of ASC 606.

	Nine Months Ended September 30,
	2022		2021
Voice Service¹	$	4,748,380	$	5,279,923
Network Access¹		3,790,634		4,310,193
Video Service¹		9,446,473		9,451,240
Data Service¹		18,543,327		17,489,723
Directory²		490,832		537,691
Other contracted revenue³		2,048,531		1,942,974
Other⁴		917,181		838,176

Revenue from customers		39,985,358		39,849,920

Subsidy and other revenue outside scope of ASC 606⁵		9,410,904		9,499,870

Total revenue	$	49,396,262	$	49,349,790

¹ Month-to-Month contracts billed and cosumed in the same month.

² Directory revenue is contracted annually, however, this revenue is recognized monthly over the contract period as the advertising is used.

³ This includes long-term contracts where the revenue is recognized monthly over the term of the contract.

⁴ This includes CPE and other equipment sales.

⁵ This includes governmental subsidies and lease revenue outside the scope of ASC 606.

Right of Use Asset	Balance September 30, 2022		Balance December 31, 2021
Operating Lease Right-of-Use Assets	$	1,273,044	$	1,154,293

Operating Lease Liability	Balance September 30, 2022		Balance December 31, 2021
Short-Term Operating Lease Liabilities	$	286,114	$	283,167
Long-Term Operating Lease Liabilities		1,030,418		905,528
Total	$	1,316,532	$	1,188,695

Maturity Analysis	Balance September 30, 2022
2022 (remaining)	$	89,397
2023		358,117
2024		246,639
2025		130,863
2026		128,822
Thereafter		704,307
Total		1,658,145
Less Imputed interest		(341,613)
Present Value of Operating Leases	$	1,316,532

	September 30,
	2022		2021
Accounts receivable, net	$	2,449,882	$	1,228,974
Contract assets		735,482		618,435
Contract liabilities		831,479		815,656

	Level 1:	Inputs are quoted prices in active markets for identical assets or liabilities.

	Level 2:	Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs that are derived principally from or corroborated by observable market data.

	Level 3:	Inputs are derived from valuation techniques where one or more significant inputs or value drivers are unobservable.

		September 30, 2022				December 31, 2021
	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-Lived Intangible Assets
Customers Relationships	14-15 yrs	$	42,878,445	$	30,023,794	$	42,878,445	$	28,806,055
Regulatory Rights	15 yrs		4,000,000		3,933,297		4,000,000		3,733,299
Trade Name	3-5 yrs		310,106		257,960		310,106		211,444
Indefinitely-Lived Intangible Assets
Video Franchise			3,000,000		-		3,000,000		-
Spectrum			877,814		-		877,814		-
Total		$	51,066,365	$	34,215,051	$	51,066,365	$	32,750,798

Net Identified Intangible Assets				$	16,851,314			$	18,315,567

● (October 1 – December 31)	$	488,123
● 2023	$	1,660,295
● 2024	$	1,623,654
● 2025	$	1,618,732
● 2026	$	1,613,809
● 2027	$	906,667

	Time-Based RSU's	Targeted Performance-Based RSU's		Closing Stock Price	Vesting Date
Balance at December 31, 2020	7,638	9,611
Issued	3,364	5,247	$	21.90	12/31/2023
Exercised	-	(1,588)	$	23.67	12/31/2020
Exercised	(1,562)	-	$	21.75	12/31/2021
Balance at December 31, 2021	9,440	13,270
Forfeited	-	(2,637)
Balance at September 30, 2022	9,440	10,633

	Options		Closing Stock Price	Vesting Date
Balance at December 31, 2021	-
Issued	40,577	$	21.20	4/11/2023
Issued	40,583	$	21.20	4/11/2024
Issued	40,583	$	21.20	4/11/2025
Balance at September 30, 2022	121,743

	September 30, 2022¹
Exercise Price	$	21.20
Risk-Free Rate of Interest		1.515%
Expected Term (Years)		10
Expected Stock Price Volatility		18.1%
Dividend Yield		2.44%

				Weighted Average Remaining Term (Years)	Aggregate Intrinsic Value (in Thousands)
		Weighted Average Exercise Price
	Number of Shares
	Number of Shares
Outstanding as of December 31, 2021	-	$	-	-	$	-
Granted	121,743		21.20	10		-
Outstanding as of June 30, 2022	121,743	$	21.20	9.8	$	-
Granted	-		-	-		-
Forfeited²	-		-	-		-
Outstanding as of September 30, 2022	121,743	$	21.20	9.5	$	-

Options Vested and Exercisable as of September 30, 2022	-	$	-	-	$	³

●	Communications Companies:
	•	Nuvera Communications, Inc., the parent company;
	•	Hutchinson Telephone Company (HTC), a wholly owned subsidiary of Nuvera;
	•	Peoples Telephone Company, a wholly owned subsidiary of Nuvera;
	•	Scott-Rice Telephone Co., a wholly owned subsidiary of Nuvera;
	•	Sleepy Eye Telephone Company, a wholly owned subsidiary of Nuvera;
	•	Western Telephone Company, a wholly owned subsidiary of Nuvera; and
	•	Hutchinson Telecommunications, Inc., a wholly owned subsidiary of HTC, located in Litchfield and Glencoe, Minnesota;
●	Our investments and interests in the following entities include some management responsibilities:
	•	FiberComm, LC – 20.00% subsidiary equity ownership interest. FiberComm, LC is located in Sioux City, Iowa;
	•	Broadband Visions, LLC (BBV) – 24.30% subsidiary equity ownership interest. BBV provides video headend and Internet services;
	•	Independent Emergency Services, LLC (IES) – 14.29% subsidiary equity ownership interest. IES is a provider of E-911 services to the State of Minnesota as well as a number of counties located in Minnesota; and
	•	Fiber Minnesota, LLC (FM) – 7.54% subsidiary equity ownership interest. FM is a Minnesota state-wide network that provides network connectivity for regional businesses.

Communications Segment
	Three Months Ended September 30,
	2022		2021		Increase (Decrease)
Operating Revenues
Voice Service	$	1,404,890	$	1,543,749	$	(138,859)	-8.99%
Network Access		1,190,870		1,333,767		(142,897)	-10.71%
Video Service		3,126,733		3,186,355		(59,622)	-1.87%
Data Service		6,797,329		6,434,544		362,785	5.64%
A-CAM/FUSF		2,952,651		2,919,496		33,155	1.14%
Other		1,008,654		966,694		41,960	4.34%
Total Operating Revenues		16,481,127		16,384,605		96,522	0.59%

Cost of Services, Excluding Depreciation and Amortization		7,573,835		7,242,762		331,073	4.57%
Selling, General and Administrative		2,264,090		2,509,874		(245,784)	-9.79%
Depreciation and Amortization Expenses		3,520,963		3,174,698		346,265	10.91%
Total Operating Expenses		13,358,888		12,927,334		431,554	3.34%

Operating Income	$	3,122,239	$	3,457,271	$	(335,032)	-9.69%

Net Income	$	1,822,648	$	2,245,296	$	(422,648)	-18.82%

Capital Expenditures	$	12,395,515	$	6,293,138	$	6,102,377	96.97%

Communications Segment
	Nine Months Ended September 30,
	2022		2021		Increase (Decrease)
Operating Revenues
Voice Service	$	4,321,047	$	4,639,793	$	(318,746)	-6.87%
Network Access		3,685,145		4,260,892		(575,747)	-13.51%
Video Service		9,446,613		9,452,955		(6,342)	-0.07%
Data Service		20,288,217		19,071,081		1,217,136	6.38%
A-CAM/FUSF		8,737,738		8,841,657		(103,919)	-1.18%
Other		2,917,502		3,083,412		(165,910)	-5.38%
Total Operating Revenues		49,396,262		49,349,790		46,472	0.09%

Cost of Services, Excluding Depreciation and Amortization		22,654,487		22,058,348		596,139	2.70%
Selling, General and Administrative		7,571,025		7,728,530		(157,505)	-2.04%
Depreciation and Amortization Expenses		10,512,317		9,370,552		1,141,765	12.18%
Total Operating Expenses		40,737,829		39,157,430		1,580,399	4.04%

Operating Income	$	8,658,433	$	10,192,360	$	(1,533,927)	-15.05%

Net Income	$	5,924,655	$	9,868,920	$	(3,944,265)	-39.97%

Capital Expenditures	$	22,407,662	$	11,859,569	$	10,548,093	88.94%

Key metrics
Access Lines		15,888		17,644		(1,756)	-9.95%
Video Customers		9,336		10,282		(946)	-9.20%
Broadband Customers		32,606		32,289		317	0.98%

	●	We may be required to use a substantial portion of our cash flow from operations to make principal and interest payments on our debt, which will reduce funds available for operations, capital expenditures, future business opportunities and strategic initiatives;
	●	We may have limited flexibility to react to changes in our business and our industry;

	●	Hazardous materials may have been released at properties that we currently own or formerly owned (perhaps through our predecessors). Under certain environmental laws, we could be held liable, without regard to fault, for the costs of investigating and remediating any actual or threatened contamination at these properties and for contamination associated with disposal by us, or by our predecessors, of hazardous materials at third-party disposal sites;

	●	We could incur substantial costs in the future if we acquire businesses or properties subject to environmental requirements or affected by environmental contamination. In particular, environmental laws regulating wetlands, endangered species and other land use and natural resources may increase the costs associated with future business or expansion or delay, alter or interfere with such plans;

	●	The presence of contamination can adversely affect the value of our properties and make it difficult to sell any affected property or to use it as collateral; and

	●	We could be held responsible for third-party property damage claims, personal injury claims or natural resource damage claims relating to contamination found at any of our current or past properties.

				Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs

	Total Number of Shares Purchased as Part of Publicaly Announced Plans or or Programs (1)

		Average Price Paid per Share

Period
July 1, 2019 - December 30, 2020	19,487		N/A	$	3,647,263
January 1 - June 30, 2021	3,028	$	23.80	$	3,575,197
July 1 - December 31, 2021	4,000	$	23.85	$	-
Total July 1, 2019 - December 31, 2021	26,515

(1) The total number of shares purchased includes: (i) shares purchased under the Board's authorizations
described above, including market purchases and privately negotiated purchases.

	NUVERA COMMUNICATIONS, INC.

Dated: November 9, 2022	By	/s/ Glenn H. Zerbe
	Glenn H. Zerbe, President and Chief Executive Officer

Dated: November 9, 2022	By	/s/ Curtis O. Kawlewski
	Curtis O. Kawlewski, Chief Financial Officer

Date: November 9, 2022	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe
		President and Chief Executive Officer

Date: November 9, 2022		/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski
		Chief Financial Officer