Nuvera Communications, Inc 10-Q for FY2021 Q3

Nuvera Communications, Inc. (NUVR)

10-Q 2021-11-09 For: 2021-09-30

Added on April 06, 2026

About this 10-Q

Nuvera Communications, Inc filed this 10-Q on November 9, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $16.38M; up 0.3% from $16.34M a year earlier
Net income: $2.25M; down 8.7% from net income of $2.46M a year earlier
Diluted EPS: $0.43; down 8.5% 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

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1	Financial Statements	4 - 10

	Consolidated Statements of Income (unaudited) for the Three and Nine Months Ended September 30, 2021 and 2020	4

	Consolidated Statements of Comprehensive Income (unaudited) for the Three and Nine Months Ended September 30, 2021 and 2020	5

	Consolidated Balance Sheets (unaudited) as of September 30, 2021 and December 31,2020	6 - 7

	Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2021 and 2020	8

	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Nine Months ended September 30, 2021 and 2020	9 - 10

	Condensed Notes to Consolidated Financial Statements (unaudited)	11 - 29

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29 - 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	43

Item 1A	Risk Factors	44

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 3	Defaults upon Senior Securities	44

Item 4	Mine Safety Disclosures	44

Item 5	Other Information	44

Item 6	Exhibits Listing	45

	Signatures	46

	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,
	2021		2020		2021		2020
OPERATING REVENUES:
Voice Service	$	1,543,749	$	1,664,700	$	4,639,793	$	5,095,754
Network Access		1,333,767		1,419,902		4,260,892		4,636,682
Video Service		3,186,355		3,081,057		9,452,955		9,158,795
Data Service		6,434,544		5,924,036		19,071,081		17,406,412
A-CAM/FUSF		2,919,496		2,995,736		8,841,657		9,089,391
Other Non-Regulated		966,694		1,255,142		3,083,412		3,264,560
Total Operating Revenues		16,384,605		16,340,573		49,349,790		48,651,594

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,338,967		3,201,938		10,091,585		9,403,009
Cost of Video		2,595,189		2,518,433		8,051,667		7,726,161
Cost of Data		923,944		915,104		2,767,166		2,572,503
Cost of Other Nonregulated Services		384,662		415,455		1,147,930		1,167,694
Depreciation and Amortization		3,174,698		3,019,123		9,370,552		9,119,649
Selling, General and Administrative		2,509,874		2,308,662		7,728,530		7,537,251
Total Operating Expenses		12,927,334		12,378,715		39,157,430		37,526,267

OPERATING INCOME		3,457,271		3,961,858		10,192,360		11,125,327

OTHER (EXPENSE) INCOME
Interest Expense		(522,832)		(613,541)		(1,616,031)		(1,907,898)
Interest/Dividend Income		22,235		5,936		182,065		104,465
Interest During Construction		21,957		25,946		42,227		93,507
Gain on PPP Loan Forgiveness		-		-		2,912,433		-
Gain on Investments		-		-		-		52,881
CoBank Patronage Dividends		-		-		625,490		647,369
Other Investment Income		139,833		36,956		244,776		197,170
Total Other Income (Expense)		(338,807)		(544,703)		2,390,960		(812,506)

INCOME BEFORE INCOME TAXES		3,118,464		3,417,155		12,583,320		10,312,821

INCOME TAXES		873,168		956,801		2,714,400		2,887,582

NET INCOME	$	2,245,296	$	2,460,354	$	9,868,920	$	7,425,239

NET INCOME PER SHARE
Basic	$	0.43	$	0.47	$	1.90	$	1.43
Diluted	$	0.43	$	0.47	$	1.89	$	1.43

DIVIDENDS PER SHARE	$	0.1400	$	0.0000	$	0.4100	$	0.1300

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,208,491		5,199,101		5,207,341		5,192,132
Diluted		5,219,374		5,205,684		5,216,453		5,197,140

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,
	2021		2020		2021		2020

Net Income	$	2,245,296	$	2,460,354	$	9,868,920	$	7,425,239

Other Comprehensive Income (Loss):
Unrealized Gains (Losses) on Interest Rate Swaps		202,791		147,875		1,195,182		(2,773,292)
Income Tax Benefit (Expense) Related to Unrealized Gains (Losses) on Interest Rate Swaps		(57,877)		(42,203)		(341,105)		791,498
Other Comprehensive Income (Loss):		144,914		105,672		854,077		(1,981,794)

Comprehensive Income	$	2,390,210	$	2,566,026	$	10,722,997	$	5,443,445

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

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	September 30, 2021		December 31, 2020
	September 30, 2021		December 31, 2020
CURRENT ASSETS:
Cash	$	4,746,025	$	8,617,660
Receivables, Net of Allowance for Doubtful Accounts of $140,000 and $160,000		1,972,846		1,885,196
Income Taxes Receivable		176,186		615,587
Materials, Supplies, and Inventories		6,028,655		2,965,960
Prepaid Expenses and Other Current Assets		1,808,278		1,000,395
Total Current Assets		14,731,990		15,084,798

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		19,146,465		21,639,293
Other Investments		10,246,840		9,960,187
Right of Use Asset		1,222,606		1,211,707
Other Assets		406,664		299,155
Total Investments and Other Assets		80,925,604		83,013,371

PROPERTY, PLANT & EQUIPMENT:
Communications Plant		181,841,046		171,961,736
Other Property & Equipment		26,862,878		25,758,591
Video Plant		11,184,427		11,143,951
Total Property, Plant and Equipment		219,888,351		208,864,278
Less Accumulated Depreciation		145,248,602		138,385,628
Net Property, Plant & Equipment		74,639,749		70,478,650

TOTAL ASSETS	$	170,297,343	$	168,576,819

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

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

LIABILITIES AND STOCKHOLDERS' EQUITY

	September 30, 2021		December 31, 2020
	September 30, 2021		December 31, 2020
CURRENT LIABILITIES:
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees	$	4,511,844	$	6,788,430
Accounts Payable		2,038,402		1,604,735
Other Accrued Taxes		192,087		258,691
Deferred Compensation		127,834		319,754
Accrued Compensation		2,115,767		2,247,057
Other Accrued Liabilities		897,845		811,003
Total Current Liabilities		9,883,779		12,029,670

LONG-TERM DEBT, Net of Unamortized Loan Fees		43,165,144		47,161,441

NONCURRENT LIABILITIES:
Loan Guarantees		235,448		273,805
Deferred Income Taxes		17,329,514		16,988,409
Unrecognized Tax Benefit		47,363		47,363
Other Accrued Liabilities		1,194,569		1,283,834
Financial Derivative Instruments		1,525,936		2,721,118
Deferred Compensation		412,521		450,473
Total Noncurrent Liabilities		20,745,351		21,765,002

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, 5,208,491 and 5,200,689 Shares Issued and Outstanding		8,680,819		8,667,816
Accumulated Other Comprehensive Loss		(1,090,434)		(1,944,511)
Unearned Compensation		258,842		149,100
Retained Earnings		88,653,842		80,748,301
Total Stockholders' Equity		96,503,069		87,620,706

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	170,297,343	$	168,576,819

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, 2021		September 30, 2020
	September 30, 2021		September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	9,868,920	$	7,425,239
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		9,444,469		9,193,566
PPP Loan Forgiveness		(2,912,433)		-
Unrealized Gains on Investments		-		(47,640)
Undistributed Earnings of Other Equity Investments		(262,423)		(225,680)
Noncash Patronage Refund		(149,586)		(143,692)
Stock Issued in Lieu of Cash Payment		252,968		234,522
Distributions from Equity Investments		150,000		100,000
Stock-based Compensation		153,200		13,098
Changes in Assets and Liabilities:
Receivables		(86,498)		186,608
Income Taxes Receivable		439,401		(120,318)
Materials, Supplies and Inventories		(3,062,695)		(747,240)
Prepaid Expenses		(752,191)		(780,450)
Other Assets		(108,661)		(52,943)
Accounts Payable		529,947		(137,845)
Accrued Income Taxes		-		(729,600)
Other Accrued Taxes		(66,604)		(60,279)
Other Accrued Liabilities		(121,179)		(359,911)
Deferred Compensation		(229,872)		(221,472)
Net Cash Provided by Operating Activities		13,086,763		13,525,963

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(11,859,569)		(7,894,696)
Grants Received for Construction of Plant		724,465		650,208
Other, Net		(63,000)		(945,942)
Net Cash Used in Investing Activities		(11,198,104)		(8,190,430)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(3,457,800)		(3,469,215)
Loan Proceeds		-		2,889,000
Changes in Revolving Credit Facility		-		56,207
Repurchase of Common Stock		(167,467)		(238,612)
Dividends Paid		(2,135,027)		(674,171)
Net Cash Used in Financing Activities		(5,760,294)		(1,436,791)

NET CHANGE IN CASH		(3,871,635)		3,898,742

CASH at Beginning of Period		8,617,660		2,993,000

CASH at End of Period	$	4,746,025	$	6,891,742

Supplemental cash flow information:
Cash paid for interest	$	1,715,087	$	1,821,995
Net cash paid for income taxes	$	2,275,000	$	3,737,500

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, 2021
				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, 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


	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

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, 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							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


	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

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

	Three Months Ended September 30, 2021				Three Months Ended September 30, 2020				Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
	Three Months Ended September 30, 2021				Three Months Ended September 30, 2020				Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	2,245,296	$	2,245,296	$	2,460,354	$	2,460,354	$	9,868,920	$	9,868,920	$	7,425,239	$	7,425,239

Weighted-average common shares outstanding		5,208,491		5,219,374		5,199,101		5,205,684		5,207,341		5,216,453		5,192,132		5,197,140

Net income per share	$	0.43	$	0.43	$	0.47	$	0.47	$	1.90	$	1.89	$	1.43	$	1.43

	Three Months Ended September 30,
	2021		2020
Voice Service¹	$	1,733,383	$	1,910,086
Network Access¹		1,345,501		1,467,317
Video Service¹		3,185,970		3,078,909
Data Service¹		5,897,494		5,423,260
Directory²		181,626		202,800
Other Contracted Revenue³		658,867		602,346
Other⁴		263,980		445,661

Revenue from customers		13,266,821		13,130,379

Subsidy and other revenue outside scope of ASC 606⁵		3,117,784		3,210,194

Total revenue	$	16,384,605	$	16,340,573

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,
	2021		2020
Voice Services¹	$	5,279,923	$	5,754,205
Network Access¹		4,310,193		4,781,114
Video Service¹		9,451,240		9,151,424
Data Service¹		17,489,723		15,923,398
Directory²		537,691		614,806
Other contracted revenue³		1,942,974		1,804,292
Other⁴		838,176		888,341

Revenue from customers		39,849,920		38,917,580

Subsidy and other revenue outside scope of ASC 606⁵		9,499,870		9,734,014

Total revenue	$	49,349,790	$	48,651,594

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,
	2021		2020
Accounts receivable, net	$	1,228,974	$	1,431,947
Contract assets		618,435		324,548
Contract liabilities		815,656		714,194

Right of Use Asset	Balance September 30, 2021		Balance December 31, 2020
Operating Lease right-of-use assets	$	1,222,606	$	1,211,707

Operating Lease Liability	Balance September 30, 2021		Balance December 31, 2020
Short-Term Operating Lease Liability	$	278,108	$	243,218
Long-Term Operating Lease Liability		977,512		993,596
Total	$	1,255,620	$	1,236,814

Maturity Analysis	Balance September 30, 2021
2021 (remaining)	$	86,524
2022		347,278
2023		348,416
2024		236,948
2025		120,881
Thereafter		380,823
Total		1,520,870
Less Imputed interest		(265,250)
Present Value of Operating Leases	$	1,255,620

		September 30, 2021				December 31, 2020
	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-Lived Intangible Assets
Customers Relationships	14-15 yrs	$	42,878,445	$	28,057,327	$	42,878,445	$	25,811,014
Regulatory Rights	15 yrs		4,000,000		3,666,633		4,000,000		3,466,635
Trade Name	3-5 yrs		310,106		195,940		310,106		149,423
Indefinitely-Lived Intangible Assets
Video Franchise			3,000,000		-		3,000,000		-
Spectrum			877,814		-		877,814		-
Total		$	51,066,365	$	31,919,900	$	51,066,365	$	29,427,072

Net Identified Intangible Assets				$	19,146,465			$	21,639,293

● (October 1 – December 31)	$	830,898
● 2022	$	1,952,376
● 2023	$	1,660,295
● 2024	$	1,623,654
● 2025	$	1,618,732
● 2026	$	1,613,809

	Time-Based RSU's	Targeted Performance-Based RSU's	Closing Stock Price		Vesting Date
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
Exercised	(2,062)	(2,082)	$	19.00	12/31/2019
Exercised	(1,588)	-	$	19.44	12/11/2020
Forfeited	(1,254)	(4,549)
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
Balance at September 30, 2021	11,002	13,270

●	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,
	2021		2020		Increase (Decrease)
Operating Revenues
Voice Service	$	1,543,749	$	1,664,700	$	(120,951)	-7.27%
Network Access		1,333,767		1,419,902		(86,135)	-6.07%
Video Service		3,186,355		3,081,057		105,298	3.42%
Data Service		6,434,544		5,924,036		510,508	8.62%
A-CAM/FUSF		2,919,496		2,995,736		(76,240)	-2.54%
Other		966,694		1,255,142		(288,448)	-22.98%
Total Operating Revenues		16,384,605		16,340,573		44,032	0.27%

Cost of Services, Excluding Depreciation and Amortization		7,242,762		7,050,930		191,832	2.72%
Selling, General and Administrative		2,509,874		2,308,662		201,212	8.72%
Depreciation and Amortization Expenses		3,174,698		3,019,123		155,575	5.15%
Total Operating Expenses		12,927,334		12,378,715		548,619	4.43%

Operating Income	$	3,457,271	$	3,961,858	$	(504,587)	-12.74%

Net Income	$	2,245,296	$	2,460,354	$	(215,058)	-8.74%

Capital Expenditures	$	6,293,138	$	3,840,490	$	2,452,648	63.86%

Communications Segment
	Nine Months Ended September 30,
	2021		2020		Increase (Decrease)
Operating Revenues
Voice Service	$	4,639,793	$	5,095,754	$	(455,961)	-8.95%
Network Access		4,260,892		4,636,682		(375,790)	-8.10%
Video Service		9,452,955		9,158,795		294,160	3.21%
Data Service		19,071,081		17,406,412		1,664,669	9.56%
A-CAM/FUSF		8,841,657		9,089,391		(247,734)	-2.73%
Other		3,083,412		3,264,560		(181,148)	-5.55%
Total Operating Revenues		49,349,790		48,651,594		698,196	1.44%

Cost of Services, Excluding Depreciation and Amortization		22,058,348		20,869,367		1,188,981	5.70%
Selling, General and Administrative		7,728,530		7,537,251		191,279	2.54%
Depreciation and Amortization Expenses		9,370,552		9,119,649		250,903	2.75%
Total Operating Expenses		39,157,430		37,526,267		1,631,163	4.35%

Operating Income	$	10,192,360	$	11,125,327	$	(932,967)	-8.39%

Net Income	$	9,868,920	$	7,425,239	$	2,443,681	32.91%

Capital Expenditures	$	11,859,569	$	7,894,696	$	3,964,873	50.22%

Key metrics
Access Lines		17,644		20,593		(2,949)	-14.32%
Video Customers		10,282		10,979		(697)	-6.35%
Broadband Customers		32,289		30,633		1,656	5.41%
Certain historical numbers have been changed to conform to the current year's presentation

				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 - June 30, 2021	22,515		N/A	$	3,575,197
July 1, 2021 - September 30, 2021	4,000	$	23.85	$	3,479,797
Total July 1 ,2019 - September 30, 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, 2021	By	/s/ Glenn H. Zerbe
	Glenn H. Zerbe, President and Chief Executive Officer

Dated: November 9, 2021	By	/s/ Curtis O. Kawlewski
	Curtis O. Kawlewski, Chief Financial Officer

Date: November 9, 2021	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe
		President and Chief Executive Officer

Date: November 9, 2021		/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski
		Chief Financial Officer