Nuvera Communications, Inc 10-Q for FY2022 Q2

Nuvera Communications, Inc. (NUVR)

10-Q 2022-08-09 For: 2022-06-30

Added on April 06, 2026

About this 10-Q

Nuvera Communications, Inc filed this 10-Q on August 9, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

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

Revenue: $16.44M; down 0.3% from $16.49M a year earlier
Net income: $1.7M; down 30.4% from net income of $2.44M a year earlier
Diluted EPS: $0.33; down 29.8% from $0.47 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	4 - 10

	Consolidated Statements of Income (unaudited) for the Three and Six Months Ended June 30, 2022 and 2021	4

	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Six Months Ended June 30, 2022 and 2021	5

	Consolidated Balance Sheets (unaudited) as of June 30, 2022 and December 31, 2021	6 -7

	Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 30, 2022 and 2021	8

	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Six Months ended June 30, 2022 and 2021	9-10

	Condensed Notes to Consolidated Financial Statements (unaudited)	11- 30

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30 - 44

Item 3	Quantitative and Qualitative Disclosures about Market Risk	44

Item 4	Controls and Procedures	44

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	44

Item 1A	Risk Factors	44 - 52

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	52

Item 3	Defaults upon Senior Securities	53

Item 4	Mine Safety Disclosures	53

Item 5	Other Information	53

Item 6	Exhibits Listing	53

	Signatures	54

	Exhibits

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

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

OPERATING REVENUES:
Voice Service	$	1,447,979	$	1,544,766	$	2,916,157	$	3,096,044
Network Access		1,202,965		1,344,685		2,494,275		2,927,125
Video Service		3,178,388		3,237,723		6,319,880		6,266,600
Data Service		6,774,036		6,368,566		13,490,888		12,636,537
A-CAM/FUSF		2,890,500		2,953,966		5,785,087		5,922,161
Other Non-Regulated		946,495		1,037,356		1,908,848		2,116,718
Total Operating Revenues		16,440,363		16,487,062		32,915,135		32,965,185

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,665,195		3,334,880		7,092,441		6,752,618
Cost of Video		2,549,030		2,700,135		5,098,882		5,456,478
Cost of Data		1,072,489		919,708		2,101,023		1,843,222
Cost of Other Nonregulated Services		410,112		354,022		788,306		763,268
Depreciation and Amortization		3,493,070		3,124,282		6,991,354		6,195,854
Selling, General and Administrative		2,645,472		2,554,766		5,306,935		5,218,656
Total Operating Expenses		13,835,368		12,987,793		27,378,941		26,230,096

OPERATING INCOME		2,604,995		3,499,269		5,536,194		6,735,089

OTHER (EXPENSE) INCOME
Interest Expense		(526,408)		(527,825)		(1,023,063)		(1,093,199)
Interest/Dividend Income		59,363		58,428		236,408		159,830
Interest During Construction		60,636		10,278		92,840		20,270
Gain on Debt Forgiveness		-		-		-		2,912,433
CoBank Patronage Dividends		-		-		567,468		625,490
Other Investment Income		163,076		38,895		287,377		104,943
Total Other Income (Expense)		(243,333)		(420,224)		161,030		2,729,767

INCOME BEFORE INCOME TAXES		2,361,662		3,079,045		5,697,224		9,464,856

INCOME TAXES		661,261		636,132		1,595,217		1,841,232

NET INCOME	$	1,700,401	$	2,442,913	$	4,102,007	$	7,623,624

NET INCOME PER SHARE
Basic	$	0.33	$	0.47	$	0.81	$	1.46
Diluted	$	0.33	$	0.47	$	0.80	$	1.46

DIVIDENDS PER SHARE	$	0.2800	$	0.1400	$	0.2800	$	0.2700

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,077,972		5,210,700		5,094,797		5,206,766
Diluted		5,097,055		5,219,430		5,110,798		5,214,992

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

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

	Three Months Ended June 30,				Six Months Ended June 30,
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Net Income	$	1,700,401	$	2,442,913	$	4,102,007	$	7,623,624

Other Comprehensive Gain:
Unrealized Gains on Interest Rate Swaps		673,936		47,330		2,473,761		992,391
Income Tax Expense Related to Unrealized Gains on Interest Rate Swaps		(192,341)		(13,508)		(706,011)		(283,228)
Other Comprehensive Gain:		481,595		33,822		1,767,750		709,163

Comprehensive Income	$	2,181,996	$	2,476,735	$	5,869,757	$	8,332,787

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

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	June 30, 2022		December 31, 2021
	June 30, 2022		December 31, 2021

CURRENT ASSETS:
Cash	$	906,872	$	2,306,149
Receivables, Net of Allowance for Doubtful Accounts of $60,000 and $80,000		2,783,606		2,426,009
Income Taxes Receivable		-		1,405,622
Materials, Supplies, and Inventories		10,261,495		5,357,380
Prepaid Expenses and Other Current Assets		2,222,856		1,886,810
Total Current Assets		16,174,829		13,381,970

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		17,339,398		18,315,567
Other Investments		10,655,856		10,417,563
Right of Use Asset		1,341,360		1,154,293
Financial Derivative Instruments		1,590,396		-
Other Assets		429,011		422,427
Total Investments and Other Assets		81,259,050		80,212,879

PROPERTY, PLANT & EQUIPMENT:
Communications Plant		198,151,220		189,990,012
Other Property & Equipment		28,007,548		27,439,201
Video Plant		11,328,112		11,306,071
Total Property, Plant and Equipment		237,486,880		228,735,284
Less Accumulated Depreciation		153,534,708		147,585,930
Net Property, Plant & Equipment		83,952,172		81,149,354

TOTAL ASSETS	$	181,386,051	$	174,744,203

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

Nuvera Communications, Inc 10-Q for FY2022 Q2

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

	June 30, 2022		December 31, 2021
	June 30, 2022		December 31, 2021

CURRENT LIABILITIES:
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees	$	-	$	4,511,844
Accounts Payable		2,706,242		3,244,472
Accrued Income Taxes		54,595		-
Other Accrued Taxes		258,936		260,013
Deferred Compensation		63,202		63,829
Accrued Compensation		2,150,693		2,122,436
Other Accrued Liabilities		670,152		634,247
Total Current Liabilities		5,903,820		10,836,841

LONG-TERM DEBT, Net of Unamortized Loan Fees		52,955,173		43,114,772

NONCURRENT LIABILITIES:
Loan Guarantees		196,205		222,464
Deferred Income Taxes		20,190,511		19,484,500
Unrecognized Tax Benefit		42,775		42,775
Other Accrued Liabilities		1,300,681		1,112,343
Financial Derivative Instruments		-		883,365
Deferred Compensation		383,025		396,548
Total Noncurrent Liabilities		22,113,197		22,141,995

COMMITMENTS AND CONTINGENCIES:		-		-

STOCKHOLDERS' EQUITY:
Preferred Stock - $1.66 Par Value, 10,000,000 Shares Authorized, No Shares Issued and Outstanding		-		-
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)		1,136,497		(631,253)
Unearned Compensation		272,234		259,620
Retained Earnings		90,530,833		90,338,806
Total Stockholders' Equity		100,413,861		98,650,595

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	181,386,051	$	174,744,203

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

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

	Six Months Ended
	June 30, 2022		June 30, 2021
	June 30, 2022		June 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	4,102,007	$	7,623,624
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		7,043,518		6,245,132
PPP Loan Forgiveness		-		(2,912,433)
Undistributed Earnings of Other Equity Investments		(264,034)		(138,898)
Noncash Patronage Refund		(118,223)		(129,177)
Stock Issued in Lieu of Cash Payment		200,507		85,680
Distributions from Equity Investments		110,917		150,000
Stock-based Compensation		13,281		228,683
Changes in Assets and Liabilities:
Receivables		324,722		(1,299,998)
Income Taxes Receivable		1,405,622		(428,768)
Inventory for Resale		(254,787)		(170,109)
Prepaid Expenses		(48,577)		(801,777)
Other Assets		(7,129)		(94,791)
Accounts Payable		(25,860)		(86,479)
Accrued Income Taxes		54,595		-
Other Accrued Taxes		(1,077)		(888)
Other Accrued Liabilities		65,433		(272,194)
Deferred Compensation		(14,150)		(150,845)
Net Cash Provided by Operating Activities		12,586,765		7,846,762

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(10,012,147)		(5,566,431)
Materials and Supplies for Construction		(4,649,328)		(2,479,951)
Other, Net		6,788		(53,000)
Net Cash Used in Investing Activities		(14,654,687)		(8,099,382)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(2,305,200)		(2,305,200)
Loan Origination Fees		(49,473)		-
Changes in Revolving Credit Facility		7,631,066		309,660
Repurchase of Common Stock		(3,187,500)		(72,067)
Dividends Paid		(1,420,248)		(1,405,839)
Net Cash Used in Financing Activities		668,645		(3,473,446)

NET INCREASE IN CASH		(1,399,277)		(3,726,066)

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

CASH at End of Period	$	906,872	$	4,891,594

Supplemental cash flow information:
Cash paid for interest	$	951,333	$	1,285,943
Net cash paid for income taxes	$	135,000	$	2,270,000

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 JUNE 30, 2022
				Accumulated Other Comprehensive Income (Loss)

	Common Stock					Unearned Compensation		Retained Earnings		Total Equity
	Shares	Amount				Unearned Compensation		Retained Earnings		Total Equity

BALANCE on March 31, 2022	5,064,760	$	8,441,267	$	654,902	$	262,735	$	89,187,861	$	98,546,765

Director's Stock Plan	19,818		33,030						354,412		387,442
Restricted Stock Grant							(19,293)				(19,293)
Non-Cash, Share-Based Compensation							28,792				28,792
Net Income									1,700,401		1,700,401
Dividends									(711,841)		(711,841)
Unrealized Gain on Interest Rate Swap					481,595						481,595

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


	THREE MONTHS ENDED JUNE 30, 2021
				Accumulated Other Comprehensive Income (Loss)

	Common Stock					Unearned Compensation		Retained Earnings		Total Equity
	Shares	Amount				Unearned Compensation		Retained Earnings		Total Equity

BALANCE on March 31, 2021	5,207,119	$	8,678,533	$	(1,269,170)	$	174,983	$	85,394,403	$	92,978,749

Director's Stock Plan	8,400		14,000						185,920		199,920
Restricted Stock Grant							50,603				50,603
Repurchase of Common Stock	(3,028)		(5,047)						(67,020)		(72,067)
Net Income									2,442,913		2,442,913
Dividends									(729,749)		(729,749)
Unrealized Gain on Interest Rate Swap					33,822						33,822

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

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

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

	SIX MONTHS ENDED JUNE 30, 2022
				Accumulated Other Comprehensive Income (Loss)

	Common Stock					Unearned Compensation		Retained Earnings		Total Equity
	Shares	Amount				Unearned Compensation		Retained Earnings		Total Equity

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							(15,511)				(15,511)
Non-Cash, Share-Based Compensation							28,792				28,792
Exercise of RSU's	31		52				(667)		615		-
Repurchase of Common Stock	(150,000)		(250,000)						(2,937,500)		(3,187,500)
Net Income									4,102,007		4,102,007
Dividends									(1,420,248)		(1,420,248)
Unrealized Gain on Interest Rate Swap					1,767,750						1,767,750

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


	SIX MONTHS ENDED JUNE 30, 2021
				Accumulated Other Comprehensive Income (Loss)

	Common Stock					Unearned Compensation		Retained Earnings		Total Equity
	Shares	Amount				Unearned Compensation		Retained Earnings		Total Equity

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							119,944				119,944
Exercise of RSU's	1,836		3,060				(43,458)		40,398		-
Repurchase of Common Stock	(3,028)		(5,047)						(67,020)		(72,067)
Net Income									7,623,624		7,623,624
Dividends									(1,405,839)		(1,405,839)
Unrealized Gain on Interest Rate Swap					709,163						709,163

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

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

	Three Months Ended June 30, 2022				Three Months Ended June 30, 2021				Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
	Three Months Ended June 30, 2022				Three Months Ended June 30, 2021				Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	1,700,401	$	1,700,401	$	2,442,913	$	2,442,913	$	4,102,007	$	4,102,007	$	7,623,624	$	7,623,624

Weighted-average common shares outstanding		5,077,972		5,097,055		5,210,700		5,219,430		5,094,797		5,110,798		5,206,766		5,214,992

Net income per share	$	0.33	$	0.33	$	0.47	$	0.47	$	0.81	$	0.80	$	1.46	$	1.46

	Three Months Ended June 30,
	2022		2021
Voice Service¹	$	1,587,265	$	1,761,460
Network Access¹		1,240,045		1,353,495
Video Service¹		3,178,388		3,237,723
Data Service¹		6,184,006		5,836,759
Directory²		164,646		177,946
Other Contracted Revenue³		692,951		659,613
Other⁴		293,706		273,108

Revenue from customers		13,341,007		13,300,104

Subsidy and other revenue outside scope of ASC 606⁵		3,099,356		3,186,958

Total revenue	$	16,440,363	$	16,487,062

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.

	Six Months Ended June 30,
	2022		2021
Voice Services¹	$	3,198,323	$	3,546,540
Network Access¹		2,565,682		2,964,692
Video Service¹		6,319,740		6,265,270
Data Service¹		12,333,466		11,592,229
Directory²		325,738		356,065
Other Contracted Revenue³		1,364,558		1,284,107
Other⁴		599,207		574,196

Revenue from customers		26,706,714		26,583,099

Subsidy and other revenue outside scope of ASC 606⁵		6,208,421		6,382,086

Total revenue	$	32,915,135	$	32,965,185

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.

	June 30,
	2022		2021
Accounts receivable, net	$	2,038,790	$	2,442,474
Contract assets		711,156		580,955
Contract liabilities		608,626		659,429

Right of Use Assets	Balance June 30, 2022		Balance December 31, 2021
Operating Lease Right-Of-Use Assets	$	1,341,360	$	1,154,293

Operating Lease Liabilities	Balance June 30, 2022		Balance December 31, 2021
Short-Term Operating Lease Liabilities	$	281,484	$	283,167
Long-Term Operating Lease Liabilities		1,103,722		905,528
Total	$	1,385,206	$	1,188,695

Maturity Analysis	Balance June 30, 2022
2022 (remaining)	$	178,794
2023		358,117
2024		246,639
2025		130,863
2026		128,822
Thereafter		704,307
Total		1,747,542
Less Imputed interest		(362,336)
Present Value of Operating Leases	$	1,385,206

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.

		June 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	$	29,617,882	$	42,878,445	$	28,806,055
Regulatory Rights	15 yrs		4,000,000		3,866,631		4,000,000		3,733,299
Trade Name	3-5 yrs		310,106		242,454		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	$	33,726,967	$	51,066,365	$	32,750,798

Net Identified Intangible Assets				$	17,339,398			$	18,315,567

● (July 1 – December 31)	$	976,207
● 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 June 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 June 30, 2022	121,743

●	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 connectivity for regional businesses.

Communications Segment
	Three Months Ended June 30,
	2022		2021		Increase (Decrease)
Operating Revenues
Voice Service	$	1,447,979	$	1,544,766	$	(96,787)	-6.27%
Network Access		1,202,965		1,344,685		(141,720)	-10.54%
Video Service		3,178,388		3,237,723		(59,335)	-1.83%
Data Service		6,774,036		6,368,566		405,470	6.37%
A-CAM/FUSF		2,890,500		2,953,966		(63,466)	-2.15%
Other		946,495		1,037,356		(90,861)	-8.76%
Total Operating Revenues		16,440,363		16,487,062		(46,699)	-0.28%

Cost of Services, Excluding Depreciation and Amortization		7,696,826		7,308,745		388,081	5.31%
Selling, General and Administrative		2,645,472		2,554,766		90,706	3.55%
Depreciation and Amortization Expenses		3,493,070		3,124,282		368,788	11.80%
Total Operating Expenses		13,835,368		12,987,793		847,575	6.53%

Operating Income	$	2,604,995	$	3,499,269	$	(894,274)	-25.56%

Net Income	$	1,700,401	$	2,442,913	$	(742,512)	-30.39%

Capital Expenditures	$	5,895,400	$	3,826,016	$	2,069,384	54.09%

Communications Segment
	Six Months Ended June 30,
	2022		2021		Increase (Decrease)
Operating Revenues
Voice Service	$	2,916,157	$	3,096,044	$	(179,887)	-5.81%
Network Access		2,494,275		2,927,125		(432,850)	-14.79%
Video Service		6,319,880		6,266,600		53,280	0.85%
Data Service		13,490,888		12,636,537		854,351	6.76%
A-CAM/FUSF		5,785,087		5,922,161		(137,074)	-2.31%
Other		1,908,848		2,116,718		(207,870)	-9.82%
Total Operating Revenues		32,915,135		32,965,185		(50,050)	-0.15%

Cost of Services, Excluding Depreciation and Amortization		15,080,652		14,815,586		265,066	1.79%
Selling, General and Administrative		5,306,935		5,218,656		88,279	1.69%
Depreciation and Amortization Expenses		6,991,354		6,195,854		795,500	12.84%
Total Operating Expenses		27,378,941		26,230,096		1,148,845	4.38%

Operating Income	$	5,536,194	$	6,735,089	$	(1,198,895)	-17.80%

Net Income	$	4,102,007	$	7,623,624	$	(3,521,617)	-46.19%

Capital Expenditures	$	10,012,147	$	5,566,431	$	4,445,716	79.87%

Key metrics
Access Lines		16,300		18,157		(1,857)	-10.23%
Video Customers		9,887		10,470		(583)	-5.57%
Broadband Customers		32,741		31,979		762	2.38%

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

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

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

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