Nuvera Communications, Inc 10-Q for FY2020 Q2

Nuvera Communications, Inc. (NUVR)

10-Q 2020-08-10 For: 2020-06-30

Added on April 06, 2026

About this 10-Q

Nuvera Communications, Inc filed this 10-Q on August 10, 2020, covering the quarter ended June 30, 2020 (FY2020 Q2).

Headline figures

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

Revenue: $16.14M; down 2.0% from $16.47M a year earlier
Net income: $2.34M; down 8.4% from net income of $2.56M a year earlier
Diluted EPS: $0.45; down 8.2% from $0.49 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 Six Months Ended June 30, 2020 and 2019	3

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

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

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

	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Six Months ended June 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	28-40

Item 3	Quantitative and Qualitative Disclosures About Market Risk	40

Item 4	Controls and Procedures	41

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	41

Item 1A	Risk Factors	41

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	41-42

Item 3	Defaults Upon Senior Securities	42

Item 4	Mine Safety Disclosures	42

Item 5	Other Information	42

Item 6	Exhibits Listing	43

	Signatures	44

	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,
	2020		2019		2020		2019

OPERATING REVENUES:
Local Service	$	1,682,358	$	1,827,178	$	3,431,054	$	3,681,111
Network Access		1,584,838		1,778,167		3,216,780		3,775,422
Video		3,096,144		3,048,826		6,077,738		6,037,863
Data		5,830,858		5,401,856		11,482,376		10,803,566
A-CAM/FUSF		2,994,620		3,365,229		6,093,655		6,103,602
Other Non-Regulated		955,145		1,047,115		2,009,418		2,039,225
Total Operating Revenues		16,143,963		16,468,371		32,311,021		32,440,789

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,150,455		3,017,078		6,201,071		5,873,706
Cost of Video		2,578,119		2,677,029		5,207,728		5,262,655
Cost of Data		815,337		576,486		1,657,399		1,173,793
Cost of Other Nonregulated Services		338,029		556,161		752,239		1,067,124
Depreciation and Amortization		3,048,424		3,013,579		6,100,526		6,049,904
Selling, General and Administrative		2,557,721		2,399,875		5,228,589		5,119,606
Total Operating Expenses		12,488,085		12,240,208		25,147,552		24,546,788

OPERATING INCOME		3,655,878		4,228,163		7,163,469		7,894,001

OTHER (EXPENSE) INCOME
Interest Expense		(610,694)		(894,568)		(1,294,357)		(1,832,389)
Interest/Dividend Income		52,336		90,281		98,529		111,058
Interest During Construction		26,373		39,381		67,561		76,082
Gain (Loss) on Investments		52,881		-		52,881		(104,044)
CoBank Patronage Dividends		-		-		647,369		403,786
Other Investment Income		78,883		89,405		160,214		187,917
Total Other Income (Expense)		(400,221)		(675,501)		(267,803)		(1,157,590)

INCOME BEFORE INCOME TAXES		3,255,657		3,552,662		6,895,666		6,736,411

INCOME TAXES		911,580		994,742		1,930,781		1,886,191

NET INCOME	$	2,344,077	$	2,557,920	$	4,964,885	$	4,850,220

NET INCOME PER SHARE
Basic	$	0.45	$	0.49	$	0.96	$	0.94
Diluted	$	0.45	$	0.49	$	0.96	$	0.93

DIVIDENDS PER SHARE	$	0.0000	$	0.1300	$	0.1300	$	0.2500

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,192,689		5,187,623		5,188,647		5,182,439
Diluted		5,197,589		5,195,740		5,192,868		5,189,658

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,
	2020		2019		2020		2019

Net Income	$	2,344,077	$	2,557,920	$	4,964,885	$	4,850,220

Other Comprehensive Loss:
Unrealized Losses on Interest Rate Swaps		(154,338)		(318,978)		(2,921,167)		(480,881)
Income Tax Benefit Related to Unrealized Losses on Interest Rate Swaps		44,048		91,037		833,701		137,244
Other Comprehensive Loss:		(110,290)		(227,941)		(2,087,466)		(343,637)

Comprehensive Income	$	2,233,787	$	2,329,979	$	2,877,419	$	4,506,583

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

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	June 30, 2020		December 31, 2019
	June 30, 2020		December 31, 2019

CURRENT ASSETS:
Cash	$	7,034,357	$	2,993,000
Receivables, Net of Allowance for Doubtful Accounts of $240,000 and $120,000		1,972,245		2,356,742
Income Taxes Receivable		227,118		-
Materials, Supplies, and Inventories		3,059,864		2,827,159
Prepaid Expenses and Other Current Assets		1,476,039		826,873
Total Current Assets		13,769,623		9,003,774

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		22,423,365		24,085,250
Other Investments		9,878,492		9,453,578
Right of Use Asset		1,328,864		1,558,164
Other Assets		405,052		182,581
Total Investments and Other Assets		83,938,802		85,182,602

PROPERTY, PLANT & EQUIPMENT:
Telecommunications Plant		165,718,465		163,630,396
Other Property & Equipment		24,664,741		23,301,293
Video Plant		10,962,485		10,732,919
Total Property, Plant and Equipment		201,345,691		197,664,608
Less Accumulated Depreciation		133,929,918		129,605,576
Net Property, Plant & Equipment		67,415,773		68,059,032

TOTAL ASSETS	$	165,124,198	$	162,245,408

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

Nuvera Communications, Inc 10-Q for FY2020 Q2

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

	June 30, 2020		December 31, 2019
	June 30, 2020		December 31, 2019

CURRENT LIABILITIES:
Current Portion of Long-Term Debt, Net of Unamortized Loan Fees	$	5,975,363	$	4,511,844
Accounts Payable		1,380,828		1,807,334
Accrued Income Taxes		-		729,600
Other Accrued Taxes		232,318		232,862
Deferred Compensation		318,586		311,047
Accrued Compensation		2,287,270		2,511,798
Other Accrued Liabilities		627,376		1,046,034
Total Current Liabilities		10,821,741		11,150,519


LONG-TERM DEBT, Net of Unamortized Loan Fees		50,230,430		51,072,286

NONCURRENT LIABILITIES:
Loan Guarantees		332,663		319,346
Deferred Income Taxes		15,636,355		16,470,055
Other Accrued Liabilities		1,295,049		1,454,777
Financial Derivative Instruments		3,181,585		260,418
Deferred Compensation		609,294		759,952
Total Noncurrent Liabilities		21,054,946		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		(2,273,561)		(186,095)
Unearned Compensation		100,440		189,255
Retained Earnings		76,525,033		72,106,198
Total Stockholders' Equity		83,017,081		80,758,055

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	165,124,198	$	162,245,408


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, 2020		June 30, 2019
	June 30, 2020		June 30, 2019

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	4,964,885	$	4,850,220
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		6,149,804		6,100,238
Unrealized Gains on Investments		(47,640)		104,044
Undistributed Earnings of Other Equity Investments		(168,189)		(204,422)
Noncash Patronage Refund		(143,692)		(100,946)
Stock Issued in Lieu of Cash Payment		174,548		201,662
Distributions from Equity Investments		-		200,000
Stock-based Compensation		(10,079)		54,149
Changes in Assets and Liabilities:
Receivables		387,342		1,233,888
Income Taxes Receivable		(227,118)		305,751
Materials, Supplies and Investments		(232,705)		(202,601)
Prepaid Expenses		(519,246)		(413,410)
Other Assets		(165,600)		(48,900)
Accounts Payable		(590,466)		(197,775)
Accrued Income Taxes		(729,600)		425,440
Other Accrued Taxes		(544)		11,852
Other Accrued Liabilities		(573,614)		(393,642)
Deferred Compensation		(143,119)		(24,278)
Net Cash Provided by Operating Activities		8,124,967		11,901,270

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(4,054,206)		(4,119,328)
Grants Received for Construction of Plant		422,786		390,922
Other, Net		(111,792)		(106,959)
Net Cash Used in Investing Activities		(3,743,212)		(3,835,365)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(2,316,615)		(1,152,600)
Loan Proceeds		2,889,000		-
Loan Origination Fees		-		(18,084)
Repurchase of Common Stock		(238,612)		-
Dividends Paid		(674,171)		(1,295,836)
Net Cash Used in Financing Activities		(340,398)		(2,466,520)

NET INCREASE IN CASH		4,041,357		5,599,385

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

CASH at End of Period	$	7,034,357	$	7,184,154

Supplemental cash flow information:
Cash paid for interest	$	1,253,890	$	1,803,485
Net cash paid for income taxes	$	2,887,500	$	1,155,000

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

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

	THREE MONTHS ENDED JUNE 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 March 31, 2020	5,179,866	$	8,633,111	$	(2,163,271)	$	57,465	$	73,908,545	$	80,435,850

Director's Stock Plan	12,264		20,440						179,464		199,904
Employee Stock Plan	6,971		11,618						92,947		104,565
Restricted Stock Grant							42,975				42,975
Net Income									2,344,077		2,344,077
Unrealized Loss on Interest Rate Swap					(110,290)						(110,290)

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



	THREE MONTHS ENDED JUNE 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 March 31, 2019	5,181,249	$	8,635,415	$	(406,717)	$	99,896	$	67,957,596	$	76,286,190

Director's Stock Plan	9,561		15,935						164,003		179,938
Restricted Stock Grant							34,037				34,037
Net Income									2,557,920		2,557,920
Dividends									(674,805)		(674,805)
Unrealized Loss on Interest Rate Swap					(227,941)						(227,941)

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

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, 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							37,801				37,801
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									4,964,885		4,964,885
Dividends									(674,171)		(674,171)
Unrealized Loss on Interest Rate Swap					(2,087,466)						(2,087,466)

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



	SIX MONTHS ENDED JUNE 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							54,149				54,149
Net Income									4,850,220		4,850,220
Dividends									(1,295,836)		(1,295,836)
Unrealized Loss on Interest Rate Swap					(343,637)						(343,637)

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

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

	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019				Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019				Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	2,344,007	$	2,344,007	$	2,557,920	$	2,557,920	$	4,964,885	$	4,964,885	$	4,850,220	$	4,850,220

Weighted-average common shares outstanding		5,192,689		5,197,589		5,187,623		5,195,740		5,188,647		5,192,868		5,182,439		5,189,658

Net income per share	$	0.45	$	0.45	$	0.49	$	0.49	$	0.96	$	0.96	$	0.94	$	0.93

	Three Months Ended June 30,
	2020		2019
Voice services¹	$	1,899,591	$	2,046,301
Network access¹		1,633,236		1,827,592
Video ¹		3,094,230		3,045,927
Data ¹		5,336,635		4,919,624
Directory²		204,001		202,829
Other contracted revenue³		599,404		586,962
Other⁴		190,138		274,413

Revenue from customers		12,957,235		12,903,648

Subsidy and other revenue outside scope of ASC 606⁵		3,186,728		3,564,723

Total revenue	$	16,143,963	$	16,468,371

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,
	2020		2019
Voice services¹	$	3,844,119	$	4,122,504
Network access¹		3,313,797		3,873,618
Video ¹		6,072,515		6,032,313
Data ¹		10,500,138		9,887,904
Directory²		412,006		404,878
Other contracted revenue³		1,201,946		1,160,304
Other⁴		442,680		458,448

Revenue from customers		25,787,201		25,939,969

Subsidy and other revenue outside scope of ASC 606⁵		6,523,820		6,500,820

Total revenue	$	32,311,021	$	32,440,789

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,
	2020		2019
Accounts receivable, net	$	1,231,213	$	2,010,035
Contract assets		264,400		87,739
Contract liabilities		632,767		466,132

Right of Use Asset	Balance June 30, 2020		Balance December 31, 2019
Operating Lease right-of-use assets	$	1,328,864	$	1,558,164

Operating Lease Liability	Balance June 30, 2020		Balance December 31, 2019
Short-Term Operating Lease Liability	$	316,143	$	415,949
Long-Term Operating Lease Liability		1,027,040		1,146,132
Total	$	1,343,183	$	1,562,081

Maturity Analysis	Balance June 30, 2020
2020 (remaining)	$	236,038
2021		290,163
2022		276,299
2023		276,299
2024		164,648
Thereafter		410,595
Total		1,654,042
Less Imputed interest		(310,859)
Present Value of Operating Leases	$	1,343,183

		June 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	$	24,313,471	$	42,878,445	$	22,815,928
Regulatory Rights	15 yrs		4,000,000		3,333,303		4,000,000		3,199,971
Trade Name	3-5 yrs		310,106		118,412		880,106		657,402
Indefinitely-Lived Intangible Assets
Video Franchise			3,000,000		-		3,000,000		-
Total		$	50,188,551	$	27,765,186	$	50,758,551	$	26,673,301

Net Identified Intangible Assets				$	22,423,365			$	24,085,250

● (July 1 – December 31)	$	1,661,886
● 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 June 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 June 30,
		2020		2019		Increase (Decrease)
Operating Revenues
Local Service	$	1,682,358	$	1,827,178	$	(144,820)	-7.93%
Network Access		1,584,838		1,778,167		(193,329)	-10.87%
Video		3,096,144		3,048,826		47,318	1.55%
Data		5,830,858		5,401,856		429,002	7.94%
A-CAM/FUSF		2,994,620		3,365,229		(370,609)	-11.01%
Other Non-Regulated		955,145		1,047,115		(91,970)	-8.78%
Total Operating Revenues		16,143,963		16,468,371		(324,408)	-1.97%

Cost of Services, Excluding Depreciation and Amortization		6,881,940		6,826,754		55,186	0.81%
Selling, General and Administrative		2,557,721		2,399,875		157,846	6.58%
Depreciation and Amortization Expenses		3,048,424		3,013,579		34,845	1.16%
Total Operating Expenses		12,488,085		12,240,208		247,877	2.03%

Operating Income	$	3,655,878	$	4,228,163	$	(572,285)	-13.54%

Net Income	$	2,344,077	$	2,557,920	$	(213,843)	-8.36%

Capital Expenditures	$	2,300,017	$	1,806,798	$	493,219	27.30%

Communications Segment
	Six Months Ended June 30,
	2020		2019		Increase (Decrease)
Operating Revenues
Local Service	$	3,431,054	$	3,681,111	$	(250,057)	-6.79%
Network Access		3,216,780		3,775,422		(558,642)	-14.80%
Video		6,077,738		6,037,863		39,875	0.66%
Data		11,482,376		10,803,566		678,810	6.28%
A-CAM/FUSF		6,093,655		6,103,602		(9,947)	-0.16%
Other		2,009,418		2,039,225		(29,807)	-1.46%
Total Operating Revenues		32,311,021		32,440,789		(129,768)	-0.40%

Cost of Services, Excluding Depreciation and Amortization		13,818,437		13,377,278		441,159	3.30%
Selling, General and Administrative		5,228,589		5,119,606		108,983	2.13%
Depreciation and Amortization Expenses		6,100,526		6,049,904		50,622	0.84%
Total Operating Expenses		25,147,552		24,546,788		600,764	2.45%

Operating Income	$	7,163,469	$	7,894,001	$	(730,532)	-9.25%

Net Income	$	4,964,885	$	4,850,220	$	114,665	2.36%

Capital Expenditures	$	4,054,206	$	4,119,328	$	(65,122)	-1.58%

Key metrics
Access Lines		24,540		26,069		(1,529)	-5.87%
Video Customers		11,218		12,028		(810)	-6.73%
Broadband Customers		27,066		26,091		975	3.74%

					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
January 1 – June 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: August 10, 2020	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe, President and Chief Executive Officer

Dated: August 10, 2020	By	/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski, Chief Financial Officer

Date: August 10, 2020	By	/s/ Glenn H. Zerbe
		Glenn H. Zerbe
		President and Chief Executive Officer

Date: August 10, 2020	By	/s/ Curtis O. Kawlewski
		Curtis O. Kawlewski
		Chief Financial Officer