NUVR 10-Q

Nuvera Communications, Inc. (NUVR)

10-Q 2021-08-09 For: 2021-06-30

View Original

Added on April 06, 2026

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 Six Months Ended June 30, 2021 and 2020	4

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

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

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

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

	Condensed Notes to Consolidated Financial Statements (unaudited)	11 - 28

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29 - 42

Item 3	Quantitative and Qualitative Disclosures About Market Risk	42

Item 4	Controls and Procedures	42

PART II – OTHER INFORMATION

Item 1	Legal Proceedings	42

Item 1A	Risk Factors	42

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	43

Item 3	Defaults Upon Senior Securities	43

Item 4	Mine Safety Disclosures	43

Item 5	Other Information	43

Item 6	Exhibits Listing	43 - 44

	Signatures	45

	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,
	2021		2020		2021		2020

OPERATING REVENUES:
Voice Service	$	1,544,766	$	1,682,358	$	3,096,044	$	3,431,054
Network Access		1,344,685		1,584,838		2,927,125		3,216,780
Video Service		3,237,723		3,096,144		6,266,600		6,077,738
Data Service		6,368,566		5,830,858		12,636,537		11,482,376
A-CAM/FUSF		2,953,966		2,994,620		5,922,161		6,093,655
Other Non-Regulated		1,037,356		955,145		2,116,718		2,009,418
Total Operating Revenues		16,487,062		16,143,963		32,965,185		32,311,021

OPERATING EXPENSES:
Plant Operations (Excluding Depreciation and Amortization)		3,334,880		3,150,455		6,752,618		6,201,071
Cost of Video		2,700,135		2,578,119		5,456,478		5,207,728
Cost of Data		919,708		815,337		1,843,222		1,657,399
Cost of Other Nonregulated Services		354,022		338,029		763,268		752,239
Depreciation and Amortization		3,124,282		3,048,424		6,195,854		6,100,526
Selling, General and Administrative		2,554,766		2,557,721		5,218,656		5,228,589
Total Operating Expenses		12,987,793		12,488,085		26,230,096		25,147,552

OPERATING INCOME		3,499,269		3,655,878		6,735,089		7,163,469

OTHER (EXPENSE) INCOME
Interest Expense		(527,825)		(610,694)		(1,093,199)		(1,294,357)
Interest/Dividend Income		58,428		52,336		159,830		98,529
Interest During Construction		10,278		26,373		20,270		67,561
Gain on Debt Forgiveness		-		-		2,912,433		-
Gain (Loss) on Investments		-		52,881		-		52,881
CoBank Patronage Dividends		-		-		625,490		647,369
Other Investment Income		38,895		78,883		104,943		160,214
Total Other Income (Expense)		(420,224)		(400,221)		2,729,767		(267,803)

INCOME BEFORE INCOME TAXES		3,079,045		3,255,657		9,464,856		6,895,666

INCOME TAXES		636,132		911,580		1,841,232		1,930,781

NET INCOME	$	2,442,913	$	2,344,077	$	7,623,624	$	4,964,885

NET INCOME PER SHARE
Basic	$	0.47	$	0.45	$	1.46	$	0.96
Diluted	$	0.47	$	0.45	$	1.46	$	0.96

DIVIDENDS PER SHARE	$	0.1400	$	0.0000	$	0.2700	$	0.1300

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		5,210,700		5,192,689		5,206,766		5,188,647
Diluted		5,219,430		5,197,589		5,214,992		5,192,868

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,
	2021		2020		2021		2020

Net Income	$	2,442,913	$	2,344,077	$	7,623,624	$	4,964,885

Other Comprehensive Gain (Loss):
Unrealized Gains (Losses) on Interest Rate Swaps		47,330		(154,338)		992,391		(2,921,167)
Income Tax (Expense) Benefit Related to Unrealized Gains (Losses) on Interest Rate Swaps		(13,508)		44,048		(283,228)		833,701
Other Comprehensive Gain (Loss):		33,822		(110,290)		709,163		(2,087,466)

Comprehensive Income	$	2,476,735	$	2,233,787	$	8,332,787	$	2,877,419

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

NUVERA COMMUNICATIONS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS

	June 30, 2021		December 31, 2020
	June 30, 2021		December 31, 2020

CURRENT ASSETS:
Cash	$	4,891,594	$	8,617,660
Receivables, Net of Allowance for Doubtful Accounts of $150,000 and $160,000		3,185,954		1,885,196
Income Taxes Receivable		1,044,355		615,587
Materials, Supplies, and Inventories		5,616,020		2,965,960
Prepaid Expenses and Other Current Assets		1,916,412		1,000,395
Total Current Assets		16,654,335		15,084,798

INVESTMENTS & OTHER ASSETS:
Goodwill		49,903,029		49,903,029
Intangibles		19,977,408		21,639,293
Other Investments		10,105,774		9,960,187
Right of Use Asset		1,291,476		1,211,707
Other Assets		393,186		299,155
Total Investments and Other Assets		81,670,873		83,013,371

PROPERTY, PLANT & EQUIPMENT:
Communications Plant		176,854,539		171,961,736
Other Property & Equipment		26,461,370		25,758,591
Video Plant		11,165,824		11,143,951
Total Property, Plant and Equipment		214,481,733		208,864,278
Less Accumulated Depreciation		142,904,847		138,385,628
Net Property, Plant & Equipment		71,576,886		70,478,650

TOTAL ASSETS	$	169,902,094	$	168,576,819

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

NUVR 10-Q

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, 2021		December 31, 2020
	June 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		1,584,029		1,604,735
Other Accrued Taxes		257,803		258,691
Deferred Compensation		190,895		319,754
Accrued Compensation		2,196,426		2,247,057
Other Accrued Liabilities		638,235		811,003
Total Current Liabilities		9,379,232		12,029,670

LONG-TERM DEBT, Net of Unamortized Loan Fees		44,602,765		47,161,441

NONCURRENT LIABILITIES:
Loan Guarantees		248,317		273,805
Deferred Income Taxes		17,271,637		16,988,409
Unrecognized Tax Benefit		47,363		47,363
Other Accrued Liabilities		1,291,375		1,283,834
Financial Derivative Instruments		1,728,727		2,721,118
Deferred Compensation		428,487		450,473
Total Noncurrent Liabilities		21,015,906		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, 5,212,491 and 5,200,689 Shares Issued and Outstanding		8,687,486		8,667,816
Accumulated Other Comprehensive Loss		(1,235,348)		(1,944,511)
Unearned Compensation		225,586		149,100
Retained Earnings		87,226,467		80,748,301
Total Stockholders' Equity		94,904,191		87,620,706

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	169,902,094	$	168,576,819

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

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, 2021		June 30, 2020
	June 30, 2021		June 30, 2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	7,623,624	$	4,964,885
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		6,245,132		6,149,804
PPP Loan Forgiveness		(2,912,433)		-
Unrealized Gains on Investments		-		(47,640)
Undistributed Earnings of Other Equity Investments		(138,898)		(168,189)
Noncash Patronage Refund		(129,177)		(143,692)
Stock Issued in Lieu of Cash Payment		85,680		174,548
Distributions from Equity Investments		150,000		-
Stock-based Compensation		228,683		(10,079)
Changes in Assets and Liabilities:
Receivables		(1,299,998)		387,342
Income Taxes Receivable		(428,768)		(227,118)
Materials, Supplies and Inventories		(2,650,060)		(232,705)
Prepaid Expenses		(801,777)		(519,246)
Other Assets		(94,791)		(225,316)
Accounts Payable		(86,479)		(590,466)
Accrued Income Taxes		-		(729,600)
Other Accrued Taxes		(888)		(544)
Other Accrued Liabilities		(272,194)		(573,614)
Deferred Compensation		(150,845)		(143,119)
Net Cash Provided by Operating Activities		5,366,811		8,065,251

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment, Net		(5,566,431)		(4,054,206)
Grants Received for Construction of Plant		-		422,786
Other, Net		(53,000)		(52,076)
Net Cash Used in Investing Activities		(5,619,431)		(3,683,496)

CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments of Long-Term Debt		(2,305,200)		(2,316,615)
Loan Proceeds		-		2,889,000
Changes in Revolving Credit Facility		309,660		-
Repurchase of Common Stock		(72,067)		(238,612)
Dividends Paid		(1,405,839)		(674,171)
Net Cash Used in Financing Activities		(3,473,446)		(340,398)

NET INCREASE IN CASH		(3,726,066)		4,041,357

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

CASH at End of Period	$	4,891,594	$	7,034,357

Supplemental cash flow information:
Cash paid for interest	$	1,285,943	$	1,253,890
Net cash paid for income taxes	$	2,270,000	$	2,887,500

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 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


	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

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, 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


	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

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

	Three Months Ended June 30, 2021				Three Months Ended June 30, 2020				Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
	Three Months Ended June 30, 2021				Three Months Ended June 30, 2020				Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
	Basic		Diluted		Basic		Diluted		Basic		Diluted		Basic		Diluted

Net Income	$	2,442,913	$	2,442,913	$	2,344,077	$	2,344,077	$	7,623,624	$	7,623,624	$	4,964,885	$	4,964,885

Weighted-average common shares outstanding		5,210,700		5,219,430		5,192,689		5,197,589		5,206,766		5,214,992		5,188,647		5,192,868

Net income per share	$	0.47	$	0.47	$	0.45	$	0.45	$	1.46	$	1.46	$	0.96	$	0.96

	Three Months Ended June 30,
	2021		2020
Voice Service¹	$	1,761,460	$	1,899,591
Network Access¹		1,353,495		1,633,236
Video Service¹		3,237,723		3,094,230
Data Service¹		5,836,759		5,336,635
Directory²		177,946		204,001
Other Contracted Revenue³		659,613		599,404
Other⁴		273,108		190,138

Revenue from customers		13,300,104		12,957,235

Subsidy and other revenue outside scope of ASC 606⁵		3,186,958		3,186,728

Total revenue	$	16,487,062	$	16,143,963

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,
	2021		2020
Voice Services¹	$	3,546,540	$	3,844,119
Network Access¹		2,964,692		3,313,797
Video Service¹		6,265,270		6,072,515
Data Service¹		11,592,229		10,500,138
Directory²		356,065		412,006
Other Contracted Revenue³		1,284,107		1,201,946
Other⁴		574,196		442,680

Revenue from customers		26,583,099		25,787,201

Subsidy and other revenue outside scope of ASC 606⁵		6,382,086		6,523,820

Total revenue	$	32,965,185	$	32,311,021

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,
	2021		2020
Accounts receivable, net	$	2,442,474	$	1,231,213
Contract assets		580,955		264,400
Contract liabilities		659,429		632,767

Right of Use Asset	Balance June 30, 2021		Balance December 31, 2020
Operating Lease right-of-use assets	$	1,291,476	$	1,211,707

Operating Lease Liability	Balance June 30, 2021		Balance December 31, 2020
Short-Term Operating Lease Liability	$	273,568	$	243,218
Long-Term Operating Lease Liability		1,048,798		993,596
Total	$	1,322,366	$	1,236,814

Maturity Analysis	Balance June 30, 2021
2021 (remaining)	$	173,048
2022		347,278
2023		348,416
2024		236,948
2025		120,881
Thereafter		380,823
Total		1,607,394
Less Imputed interest		(285,028)
Present Value of Operating Leases	$	1,322,366

		June 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	$	27,308,556	$	42,878,445	$	25,811,014
Regulatory Rights	15 yrs		4,000,000		3,599,967		4,000,000		3,466,635
Trade Name	3-5 yrs		310,106		180,434		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	$	31,088,957	$	51,066,365	$	29,427,072

Net Identified Intangible Assets				$	19,977,408			$	21,639,293

● (July 1 – December 31)	$	1,661,841
● 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 June 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
	▪	SM Broadband, LLC (SMB) – 8.33% subsidiary equity ownership interest. SMB provides network connectivity for regional businesses.

Communications Segment
	Three Months Ended June 30,
	2021		2020		Increase (Decrease)
Operating Revenues
Voice Service	$	1,544,766	$	1,682,358	$	(137,592)	-8.18%
Network Access		1,344,685		1,584,838		(240,153)	-15.15%
Video Service		3,237,723		3,096,144		141,579	4.57%
Data Service		6,368,566		5,830,858		537,708	9.22%
A-CAM/FUSF		2,953,966		2,994,620		(40,654)	-1.36%
Other		1,037,356		955,145		82,211	8.61%
Total Operating Revenues		16,487,062		16,143,963		343,099	2.13%

Cost of Services, Excluding Depreciation and Amortization		7,308,745		6,881,940		426,805	6.20%
Selling, General and Administrative		2,554,766		2,557,721		(2,955)	-0.12%
Depreciation and Amortization Expenses		3,124,282		3,048,424		75,858	2.49%
Total Operating Expenses		12,987,793		12,488,085		499,708	4.00%

Operating Income	$	3,499,269	$	3,655,878	$	(156,609)	-4.28%

Net Income	$	2,442,913	$	2,344,077	$	98,836	4.22%

Capital Expenditures	$	3,826,016	$	2,300,017	$	1,525,999	66.35%

Communications Segment
	Six Months Ended June 30,
	2021		2020		Increase (Decrease)
Operating Revenues
Local Service	$	3,096,044	$	3,431,054	$	(335,010)	-9.76%
Network Access		2,927,125		3,216,780		(289,655)	-9.00%
Video		6,266,600		6,077,738		188,862	3.11%
Data		12,636,537		11,482,376		1,154,161	10.05%
A-CAM/FUSF		5,922,161		6,093,655		(171,494)	-2.81%
Other		2,116,718		2,009,418		107,300	5.34%
Total Operating Revenues		32,965,185		32,311,021		654,164	2.02%

Cost of Services, Excluding Depreciation and Amortization		14,815,586		13,818,437		997,149	7.22%
Selling, General and Administrative		5,218,656		5,228,589		(9,933)	-0.19%
Depreciation and Amortization Expenses		6,195,854		6,100,526		95,328	1.56%
Total Operating Expenses		26,230,096		25,147,552		1,082,544	4.30%

Operating Income	$	6,735,089	$	7,163,469	$	(428,380)	-5.98%

Net Income	$	7,623,624	$	4,964,885	$	2,658,739	53.55%

Capital Expenditures	$	5,566,431	$	4,054,206	$	1,512,225	37.30%

Key metrics
Access Lines		18,157		21,165		(3,008)	-14.21%
Video Customers		10,470		11,218		(748)	-6.67%
Broadband Customers		31,979		30,441		1,538	5.05%

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 - March 31, 2021	19,487		N/A	$	3,647,263
April 1 - June 30, 2021	3,028	$	23.80	$	3,575,197
Total July 1, 2019 - June 30, 2021	22,515

(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, 2021	By	/s/ Glenn H. Zerbe
	Glenn H. Zerbe, President and Chief Executive Officer

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