Nuvera Communications, Inc 10-Q for FY2020 Q3

Nuvera Communications, Inc. (NUVR)

10-Q 2020-11-09 For: 2020-09-30

Added on April 06, 2026

About this 10-Q

Nuvera Communications, Inc filed this 10-Q on November 9, 2020, covering the quarter ended September 30, 2020 (FY2020 Q3).

Headline figures

Quarter ended September 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $16.34M; up 1.2% from $16.15M a year earlier
Net income: $2.46M; up 31.1% from net income of $1.88M a year earlier
Diluted EPS: $0.47; up 30.6% from $0.36 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, 2020 and 2019	3

	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2020 and 2019	4

	Consolidated Balance Sheets (unaudited) as of September 30, 2020 and December 31, 2019	5-6

	Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2020 and 2019	7

	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Nine Months ended September 30, 2020 and 2019	8-9

	Condensed Notes to Consolidated Financial Statements (unaudited)	10-27

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28-41

Item 3	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4	Controls and Procedures	41

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	41

Item 1A	Risk Factors	42

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3	Defaults Upon Senior Securities	42

Item 4	Mine Safety Disclosures	42

Item 5	Other Information	42-43

Item 6	Exhibits Listing	43

	Signatures	44

	Exhibits

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
OPERATING REVENUES:
Local Service	$	1,664,700	$	1,785,759	$	5,095,754	$	5,466,870
Network Access		1,419,902		1,817,673		4,636,682		5,593,095
Video		3,081,057		3,016,376		9,158,795		9,054,239
Data		5,924,036		5,446,845		17,406,412		16,250,411
A-CAM/FUSF		2,995,736		3,019,922		9,089,391		9,123,524
Other Non-Regulated		1,255,142		1,064,399		3,264,560		3,103,624
Total Operating Revenues		16,340,573		16,150,974		48,651,594		48,591,763

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,201,938		3,075,977		9,403,009		8,949,683
Cost of Video		2,518,433		2,652,377		7,726,161		7,915,032
Cost of Data		915,104		861,684		2,572,503		2,035,477
Cost of Other Nonregulated Services		415,455		543,643		1,167,694		1,610,767
Depreciation and Amortization		3,019,123		3,035,666		9,119,649		9,085,570
Selling, General and Administrative		2,308,662		2,690,342		7,537,251		7,809,948
Total Operating Expenses		12,378,715		12,859,689		37,526,267		37,406,477

OPERATING INCOME		3,961,858		3,291,285		11,125,327		11,185,286

OTHER (EXPENSE) INCOME
Interest Expense		(613,541)		(827,380)		(1,907,898)		(2,659,769)
Interest/Dividend Income		5,936		22,122		104,465		133,180
Interest During Construction		25,946		49,525		93,507		125,607
Gain (Loss) on Investments		-		-		52,881		(104,044)
CoBank Patronage Dividends		-		-		647,369		403,786
Other Investment Income		36,956		71,718		197,170		259,635
Total Other Income (Expense)		(544,703)		(684,015)		(812,506)		(1,841,605)

INCOME BEFORE INCOME TAXES		3,417,155		2,607,270		10,312,821		9,343,681

INCOME TAXES		956,801		730,035		2,887,582		2,616,226

NET INCOME	$	2,460,354	$	1,877,235	$	7,425,239	$	6,727,455

NET INCOME PER SHARE
Basic	$	0.47	$	0.36	$	1.43	$	1.30
Diluted	$	0.47	$	0.36	$	1.43	$	1.30

DIVIDENDS PER SHARE	$	0.0000	$	0.1300	$	0.1300	$	0.3800

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,199,101		5,187,152		5,192,132		5,184,010
Diluted		5,205,684		5,197,326		5,197,140		5,192,214

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,
	2020		2019		2020		2019

Net Income	$	2,460,354	$	1,877,235	$	7,425,239	$	6,727,455

Other Comprehensive Income (Loss):
Unrealized Gains (Losses) on Interest Rate Swaps		147,875		108,133		(2,773,292)		(372,748)
Income Tax Benefit (Expense) Related to Unrealized Gains (Losses) on Interest Rate Swaps		(42,203)		(30,862)		791,498		106,382
Other Comprehensive Income (Loss):		105,672		77,271		(1,981,794)		(266,366)

Comprehensive Income	$	2,566,026	$	1,954,506	$	5,443,445	$	6,461,089

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

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	September 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
CURRENT ASSETS:
Cash	$	6,891,742	$	2,993,000
Receivables, Net of Allowance for Doubtful Accounts of $190,000 and $120,000		2,173,340		2,356,742
Income Taxes Receivable		120,318		-
Materials, Supplies, and Inventories		3,574,399		2,827,159
Prepaid Expenses and Other Current Assets		1,677,269		826,873
Total Current Assets		14,437,068		9,003,774

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		21,592,422		24,085,250
Other Investments		10,718,632		9,453,578
Right of Use Asset		1,264,266		1,558,164
Other Assets		232,318		182,581
Total Investments and Other Assets		83,710,667		85,182,602

PROPERTY, PLANT & EQUIPMENT:
Communications Plant		168,648,423		163,630,396
Other Property & Equipment		25,066,903		23,301,293
Video Plant		11,105,390		10,732,919
Total Property, Plant and Equipment		204,820,716		197,664,608
Less Accumulated Depreciation		136,087,561		129,605,576
Net Property, Plant & Equipment		68,733,155		68,059,032

TOTAL ASSETS	$	166,880,890	$	162,245,408

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

Nuvera Communications, Inc 10-Q for FY2020 Q3

About this 10-Q

Headline figures

NUVERA COMMUNICATIONS, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Overview

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, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
CURRENT LIABILITIES:
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees	$	6,300,590	$	4,511,844
Accounts Payable		1,725,943		1,807,334
Accrued Income Taxes		-		729,600
Other Accrued Taxes		172,583		232,862
Deferred Compensation		319,163		311,047
Accrued Compensation		2,410,261		2,511,798
Other Accrued Liabilities		652,230		1,046,034
Total Current Liabilities		11,580,770		11,150,519

LONG-TERM DEBT, Net of Unamortized Loan Fees		48,833,449		51,072,286

NONCURRENT LIABILITIES:
Loan Guarantees		321,446		319,346
Deferred Income Taxes		15,678,558		16,470,055
Other Accrued Liabilities		1,296,309		1,454,777
Financial Derivative Instruments		3,033,710		260,418
Deferred Compensation		530,364		759,952
Total Noncurrent Liabilities		20,860,387		19,264,548

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, 5,199,101 and 5,189,218 Shares Issued and Outstanding		8,665,169		8,648,697
Accumulated Other Comprehensive Loss		(2,167,889)		(186,095)
Unearned Compensation		123,617		189,255
Retained Earnings		78,985,387		72,106,198
Total Stockholders' Equity		85,606,284		80,758,055

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	166,880,890	$	162,245,408

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, 2020		September 30, 2019
	September 30, 2020		September 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	7,425,239	$	6,727,455
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		9,193,566		9,159,487
Unrealized (Gains) Losses on Investments		(47,640)		104,044
Undistributed Earnings of Other Equity Investments		(225,680)		(274,078)
Noncash Patronage Refund		(143,692)		(100,946)
Stock Issued in Lieu of Cash Payment		234,522		261,636
Distributions from Equity Investments		100,000		200,000
Stock-based Compensation		13,098		90,311
Changes in Assets and Liabilities:
Receivables		186,608		1,292,931
Income Taxes Receivable		(120,318)		305,751
Materials, Supplies and Inventories		(747,240)		(385,600)
Prepaid Expenses		(780,450)		(393,269)
Other Assets		45,900		(36,900)
Accounts Payable		(137,845)		(622,853)
Accrued Income Taxes		(729,600)		495,476
Other Accrued Taxes		(60,279)		(51,786)
Other Accrued Liabilities		(359,911)		346,711
Deferred Compensation		(221,472)		(41,172)
Net Cash Provided by Operating Activities		13,624,806		17,077,198

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(7,894,696)		(7,939,722)
Grants Received for Construction of Plant		650,208		390,922
Other, Net		(1,044,785)		(139,815)
Net Cash Used in Investing Activities		(8,289,273)		(7,688,615)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(3,469,215)		(3,457,800)
Loan Proceeds		2,889,000		-
Changes in Revolving Credit Facility		56,207		-
Repurchase of Common Stock		(238,612)		(104,802)
Dividends Paid		(674,171)		(1,969,928)
Net Cash Used in Financing Activities		(1,436,791)		(5,532,530)

NET INCREASE IN CASH		3,898,742		3,856,053

CASH at Beginning of Period		2,993,000		1,584,769

CASH at End of Period	$	6,891,742	$	5,440,822

Supplemental cash flow information:
Cash paid for interest	$	1,821,995	$	2,631,805
Net cash paid for income taxes	$	3,737,500	$	1,815,000

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, 2020
				Accumulated Other Comprehensive Income (Loss)

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

BALANCE on June 30, 2020	5,199,101	$	8,665,169	$	(2,273,561)	$	100,440	$	76,525,033	$	83,017,081

Restricted Stock Grant							23,177				23,177
Net Income									2,460,354		2,460,354
Unrealized Gain on Interest Rate Swap					105,672						105,672

BALANCE on September 30, 2020	5,199,101	$	8,665,169	$	(2,167,889)	$	123,617	$	78,985,387	$	85,606,284



	THREE MONTHS ENDED SEPTEMBER 30, 2019
				Accumulated Other Comprehensive Income (Loss)

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

BALANCE on June 30, 2019	5,190,810	$	8,651,350	$	(634,658)	$	133,933	$	70,004,714	$	78,155,339

Restricted Stock Grant							36,162				36,162
Repurchase of Common Stock	(5,487)		(9,145)						(95,657)		(104,802)
Net Income									1,877,235		1,877,235
Dividends									(674,092)		(674,092)
Unrealized Gain on Interest Rate Swap					77,271						77,271

BALANCE on September 30, 2019	5,185,323	$	8,642,205	$	(557,387)	$	170,095	$	71,112,200	$	79,367,113

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, 2020
				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, 2019	5,189,218	$	8,648,697	$	(186,095)	$	189,255	$	72,106,198	$	80,758,055

Directors' Stock Plan	12,264		20,440						179,464		199,904
Employee Stock Plan	6,971		11,618						92,947		104,565
Restricted Stock Grant							60,978				60,978
Exercise of RSU's	4,144		6,907				(126,616)		71,829		(47,880)
Repurchase of Common Stock	(13,496)		(22,493)						(216,119)		(238,612)
Net Income									7,425,239		7,425,239
Dividends									(674,171)		(674,171)
Unrealized Loss on Interest Rate Swap					(1,981,794)						(1,981,794)

BALANCE on September 30, 2020	5,199,101	$	8,665,169	$	(2,167,889)	$	123,617	$	78,985,387	$	85,606,284



	NINE MONTHS ENDED SEPTEMBER 30, 2019
				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, 2018	5,175,258	$	8,625,430	$	(291,021)	$	79,784	$	66,181,285	$	74,595,478

Directors' Stock Plan	9,561		15,935						164,003		179,938
Employee Stock Plan	5,991		9,985						105,042		115,027
Restricted Stock Grant							90,311				90,311
Repurchase of Common Stock	(5,487)		(9,145)						(95,657)		(104,802)
Net Income									6,727,455		6,727,455
Dividends									(1,969,928)		(1,969,928)
Unrealized Loss on Interest Rate Swap					(266,366)						(266,366)

BALANCE on September 30, 2019	5,185,323	$	8,642,205	$	(557,387)	$	170,095	$	71,112,200	$	79,367,113

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

	Three Months Ended September 30, 2020				Three Months Ended September 30, 2019				Nine Months Ended September 30, 2020				Nine Months Ended September 30, 2019
	Three Months Ended September 30, 2020				Three Months Ended September 30, 2019				Nine Months Ended September 30, 2020				Nine Months Ended September 30, 2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	2,460,354	$	2,460,354	$	1,877,235	$	1,877,235	$	7,425,239	$	7,425,239	$	6,727,455	$	6,727,455

Weighted-average common shares outstanding		5,199,101		5,205,684		5,187,152		5,197,326		5,192,132		5,197,140		5,184,010		5,192,214

Net income per share	$	0.47	$	0.47	$	0.36	$	0.36	$	1.43	$	1.43	$	1.30	$	1.30

	Three Months Ended September 30,
	2020		2019
Voice services¹	$	1,910,086	$	2,008,878
Network access¹		1,467,317		1,866,177
Video ¹		3,078,909		3,013,306
Data ¹		5,423,260		4,962,492
Directory²		202,800		219,655
Other contracted revenue³		602,346		589,061
Other⁴		445,661		267,023

Revenue from customers		13,130,379		12,926,592

Subsidy and other revenue outside scope of ASC 606⁵		3,210,194		3,224,382

Total revenue	$	16,340,573	$	16,150,974

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,
	2020		2019
Voice services¹	$	5,754,205	$	6,131,382
Network access¹		4,781,114		5,739,795
Video ¹		9,151,424		9,045,619
Data ¹		15,923,398		14,850,396
Directory²		614,806		624,533
Other contracted revenue³		1,804,292		1,749,365
Other⁴		888,341		725,471

Revenue from customers		38,917,580		38,866,561

Subsidy and other revenue outside scope of ASC 606⁵		9,734,014		9,725,202

Total revenue	$	48,651,594	$	48,591,763

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.

	September 30,
	2020		2019
Accounts receivable, net	$	1,431,947	$	1,950,992
Contract assets		324,548		131,783
Contract liabilities		714,194		749,378

Right of Use Asset	Balance September 30, 2020		Balance December 31, 2019
Operating Lease right-of-use assets	$	1,264,266	$	1,558,164

Operating Lease Liability	Balance September 30, 2020		Balance December 31, 2019
Short-Term Operating Lease Liability	$	273,839	$	415,949
Long-Term Operating Lease Liability		1,008,272		1,146,132
Total	$	1,282,111	$	1,562,081

Maturity Analysis	Balance September 30, 2020
2020 (remaining)	$	113,468
2021		301,376
2022		287,512
2023		286,959
2024		173,648
Thereafter		415,845
Total		1,578,808
Less Imputed interest		(296,697)
Present Value of Operating Leases	$	1,282,111

	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, 2020				December 31, 2019
	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-Lived Intangible Assets
Customers Relationships	14-15 yrs	$	42,878,445	$	25,062,242	$	42,878,445	$	22,815,928
Regulatory Rights	15 yrs		4,000,000		3,399,969		4,000,000		3,199,971
Trade Name	3-5 yrs		310,106		133,918		880,106		657,402
Indefinitely-Lived Intangible Assets
Video Franchise			3,000,000		-		3,000,000		-
Total		$	50,188,551	$	28,596,129	$	50,758,551	$	26,673,301

Net Identified Intangible Assets				$	21,592,422			$	24,085,250

● (September 1 – December 31)	$	830,943
● 2021	$	3,323,726
● 2022	$	1,952,376
● 2023	$	1,660,295
● 2024	$	1,623,654
● 2025	$	1,618,732

	Time-Based RSU's	Targeted Performance-Based RSU's	Closing Stock Price		Vesting Date
Balance at December 31, 2018	8,717	5,000
Issued	3,172	-	$	19.26	12/31/2021
Issued	-	4,781	$	19.26	12/31/2021
Issued	1,913	-	$	20.00	12/31/2022
Excercised	(4,399)	-	$	18.50	12/10/2019
Forfeited	(1,024)	-
Balance at December 31, 2019	8,379	9,781
Issued	4,163	-	$	16.64	12/8/2022
Issued	-	6,461	$	16.64	12/31/2022
Excercised	(3,316)	(3,348)	$	19.00	12/31/2019
Forfeited	-	(3,283)
Balance at September 30, 2020	9,226	9,611

●	ILECs:
	▪	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.

●	CLECs:
	▪	Nuvera, located in Redwood Falls, Minnesota; 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;
	▪	SM Broadband, LLC (SMB) – 10.00% subsidiary equity ownership interest. SMB provides network connectivity for regional businesses.

Communications Segment
	Three Months Ended September 30,
	2020		2019		Increase (Decrease)
Operating Revenues
Local Service	$	1,664,700	$	1,785,759	$	(121,059)	-6.78%
Network Access		1,419,902		1,817,673		(397,771)	-21.88%
Video		3,081,057		3,016,376		64,681	2.14%
Data		5,924,036		5,446,845		477,191	8.76%
A-CAM/FUSF		2,995,736		3,019,922		(24,186)	-0.80%
Other		1,255,142		1,064,399		190,743	17.92%
Total Operating Revenues		16,340,573		16,150,974		189,599	1.17%

Cost of Services, Excluding Depreciation and Amortization		7,050,930		7,133,681		(82,751)	-1.16%
Selling, General and Administrative		2,308,662		2,690,342		(381,680)	-14.19%
Depreciation and Amortization Expenses		3,019,123		3,035,666		(16,543)	-0.54%
Total Operating Expenses		12,378,715		12,859,689		(480,974)	-3.74%

Operating Income	$	3,961,858	$	3,291,285	$	670,573	20.37%

Net Income	$	2,460,354	$	1,877,235	$	583,119	31.06%

Capital Expenditures	$	3,840,490	$	3,820,394	$	20,096	0.53%

Communications Segment
	Nine Months Ended September 30,
	2020		2019		Increase (Decrease)
Operating Revenues
Local Service	$	5,095,754	$	5,466,870	$	(371,116)	-6.79%
Network Access		4,636,682		5,593,095		(956,413)	-17.10%
Video		9,158,795		9,054,239		104,556	1.15%
Data		17,406,412		16,250,411		1,156,001	7.11%
A-CAM/FUSF		9,089,391		9,123,524		(34,133)	-0.37%
Other		3,264,560		3,103,624		160,936	5.19%
Total Operating Revenues		48,651,594		48,591,763		59,831	0.12%

Cost of Services, Excluding Depreciation and Amortization		20,869,367		20,510,959		358,408	1.75%
Selling, General and Administrative		7,537,251		7,809,948		(272,697)	-3.49%
Depreciation and Amortization Expenses		9,119,649		9,085,570		34,079	0.38%
Total Operating Expenses		37,526,267		37,406,477		119,790	0.32%

Operating Income	$	11,125,327	$	11,185,286	$	(59,959)	-0.54%

Net Income	$	7,425,239	$	6,727,455	$	697,784	10.37%

Capital Expenditures	$	7,894,696	$	7,939,722	$	(45,026)	-0.57%

Key metrics
Access Lines		24,123		25,528		(1,405)	-5.50%
Video Customers		10,979		11,735		(756)	-6.44%
Broadband Customers		27,103		26,277		826	3.14%

Period	Total Number of Shares Purchased as Part of Publicaly Announced Plans or or Programs (1)	Average Price Paid per Share		Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 - September 30, 2020	13,496	$	17.68	$	3,647,263

(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, 2020	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe, President and Chief Executive Officer

Dated: November 9, 2020	By	/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski, Chief Financial Officer

Date: November 9, 2020	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe
		President and Chief Executive Officer

Date: November 9, 2020	By	/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski
		Chief Financial Officer