Iowa Telecommunications Services Inc. Q2 2009 Earnings Call Transcript

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2009-07-29 10:23:29.0

Tags: Call Transcript, Earnings, RBC Capital Markets, Iowa Telecommunications Services Inc., Mergers & Acquisitions, Corporate Law, Cable, Investment, Finance, Business Operations, Telecommunications, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from David Coleman – RBC Capital Markets.

David Coleman – RBC Capital Markets

I was just wondering if I could get more clarity as far as the one-time charge of $1.8 million what that was associated with.

Craig Knock

It was simply just a dispute regarding network access and it's reflected actually down in our SG&A as where it was charged to. But if you look back over time, not only in us, but in other companies you'll see several items like this related to various traffic disputes over the past several years.

David Coleman – RBC Capital Markets

So that occurred just in the second quarter there's no recurring charge for the –

Craig Knock

No, there's nothing ongoing.

David Coleman – RBC Capital Markets

Then as far as the rate of access line loss it shows on the ILEC side improved about 120 basis points quarter-over-quarter, said the promotional activity from competitors haven't changed. Was there anything on your part that would have contributed to the improvement in access line loss? Is there anything that you guys can point to, to explain why that metric improved?

Alan L. Wells

I don't think we've done anything particularly different on price. I think we've probably maybe changed our market activities in some of the ways that we promote our products, but I really don't think our pricing has changed during the quarter.

David Coleman – RBC Capital Markets

Just to expand on that, is it less port outs to wireless or to cable telephony or is there any sort of trend that you're seeing as far as who's not taking share from you.

Alan L. Wells

I don't think we have any real trend one way or the other. I just think we've found that some of our more recent marketing activities have been effective but I don't think there's any one particular segment or competitor that we're losing less to.

David Coleman – RBC Capital Markets

Finally, as far as WHComm and New Ulm acquisitions, any additional CapEx planned once those acquisitions are completed?

Craig Knock

We factored that into our upcoming estimates, Dave.

Operator

Our next question comes from Barry McCarver – Stephens Inc.

Barry McCarver – Stephens Inc.

I think you got my question on competition already covered, but I was wondering if you could give us a little bit more color on what Sherburne looked like now that you've closed. What did their 2Q look like?

 

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