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Note 4 - Operating Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Operating Assets and Liabilities [Text Block]

4. OPERATING ASSETS AND LIABILITIES

Accounts receivable consisted of the following (in thousands):

	*September 30, 2022*			*December 31, 2021*
Trade receivables	$	47,553		$	41,947
Other receivables		17,148			16,847
Less: Allowance for credit losses		(3,233	)		(2,541	)
Total accounts receivable, net	$	61,468		$	56,253

The changes in the allowance for credit losses were as follows (in thousands):

	*Three Months Ended September 30,*						*Nine Months Ended September 30,*
	*2022*			*2021*				*2022*		2021⁽¹⁾
Beginning balance	$	3,255		$	2,843		$	2,541		$	1,252
Additions - charged to costs and expenses		2,979			2,190			6,774			4,812
Deductions - write-offs		(4,324	)		(3,580	)		(10,216	)		(7,931	)
Recoveries collected		1,323			1,340			4,134			4,660
Ending balance	$	3,233		$	2,793		$	3,233		$	2,793

⁽¹⁾	Additions include $1.4 million of additional reserves assumed in the Hargray Acquisition.

Prepaid and other current assets consisted of the following (in thousands):

	*September 30, 2022*		*December 31, 2021*
Prepaid repairs and maintenance	$	5,321	$	4,788
Software implementation costs		1,349		1,199
Prepaid insurance		5,045		3,325
Prepaid rent		3,508		2,107
Prepaid software		7,540		6,982
Deferred commissions		4,444		4,295
Interest rate swap asset		18,994		-
Inventory		5,137		-
All other current assets		9,911		9,009
Total prepaid and other current assets	$	61,249	$	31,705

Other noncurrent assets consisted of the following (in thousands):

	*September 30, 2022*		*December 31, 2021*
Operating lease right-of-use assets	$	10,912	$	15,501
Deferred commissions		8,483		8,624
Software implementation costs		6,809		7,782
Debt issuance costs		2,073		2,576
Debt investment		2,072		-
Assets held for sale		1,032		3,819
Interest rate swap asset		54,305		-
All other noncurrent assets		2,225		4,020
Total other noncurrent assets	$	87,911	$	42,322

Accounts payable and accrued liabilities consisted of the following (in thousands):

	*September 30, 2022*		*December 31, 2021*
Accounts payable	$	39,684	$	35,716
Accrued programming costs		22,795		23,703
Accrued compensation and related benefits		31,680		34,731
Accrued sales and other operating taxes		15,826		12,872
Accrued franchise fees		4,039		4,397
Deposits		6,399		6,840
Operating lease liabilities		3,833		5,633
Interest rate swap liability		-		26,662
Accrued insurance costs		6,267		5,542
Cash overdrafts		17,207		11,517
Equity investment payable⁽¹⁾		3,087		13,387
Interest payable		11,001		5,172
Income taxes payable		14,177		-
All other accrued liabilities		17,502		17,215
Total accounts payable and accrued liabilities	$	193,497	$	203,387

⁽¹⁾	Consists of the unfunded portion of the Company’s equity investment in Wisper ISP, LLC (“Wisper”). The Company funded $10.3 million of the then outstanding investment payable to Wisper during the nine months ended September 30, 2022. Refer to note 5 for details on this investment.

Other noncurrent liabilities consisted of the following (in thousands):

	*September 30, 2022*		*December 31, 2021*
Operating lease liabilities	$	6,352	$	9,098
Accrued compensation and related benefits		9,990		11,010
Deferred revenue		8,126		6,854
MBI Net Option (as defined in note 5)⁽¹⁾		35,520		123,620
All other noncurrent liabilities		5,035		5,959
Total other noncurrent liabilities	$	65,023	$	156,541

⁽¹⁾

Represents the net value of the Company’s call and put options associated with the remaining equity interests in MBI (as defined in note 5), consisting of an asset of $27.0 million and a liability of $62.5 million, respectively, as of September 30, 2022 and a liability of $17.8 million and a liability of $105.8 million, respectively, as of December 31, 2021. Refer to notes 5 and 10 for further information on the MBI Net Option (as defined in note 5).