Exhibit 99.1
Warwick Valley Telephone Reports Financial Results for the Nine Months Ended September 30, 2005
WARWICK, NY — (MARKET WIRE) — 11/14/05 — Warwick Valley Telephone Company (NASDAQ: WWVY)
announced today its financial results as of September 30, 2005. Michael Cutler, Chief Financial
Officer, reported that Net Income for the nine month period decreased 36% to $3.852 million from
$6.019 million for the same period in 2004.
Operating revenues for the nine month period decreased 7% in comparison to the same period in
2004 due to several factors: a reduction in local service revenues from access line losses to a
competitor, a decrease in network access revenues mainly as a result of lower local switching
support from the Universal Service Fund and a decline in switched access minutes, a decrease in
long distance service revenues as customer trends continue to shift towards wireless
communications, and a decrease in other services and sales resulting from lower rates mandated by
the FCC for reciprocal compensation and from an overall decrease in sales of other non-regulated
ancillary services.
Total operating expenses for the nine month period increased 13% in 2005 as compared to the same
period in 2004 primarily due to increased professional and consulting fees associated with Section
404 of the Sarbanes-Oxley Act, which relates to internal control over financial reporting.
Other income (expenses) increased 12% for the first nine months of 2005 as compared to 2004
primarily due to the $889,000 gain realized from the May 2005 release to the Company of funds that
had been held in escrow as part of the terms of the sale of the Company’s investment in DataNet in
October 2004.
Earnings per share for the nine-month period were $0.71 as compared to $1.11 for 2004.
Warwick Valley Telephone provides Local, Toll, Cellular, Internet, Video and other communications
services in Southeastern New York and Northwestern New Jersey.
Warwick Valley Telephone Company
Financial Data
(Unaudited)
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Nine Months Ended |
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September 30, |
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(Dollars in thousands, except per share data) |
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2005 |
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2004 |
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Change |
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Income Statement Data |
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Operating Revenues |
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19,425 |
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20,948 |
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(7 |
%) |
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Plant Repair and Maintenance Expenses |
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3,472 |
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3,257 |
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7 |
% |
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Depreciation, Testing and Other Expenses |
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6,721 |
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6,329 |
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6 |
% |
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Customer Service Expenses |
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3,269 |
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3,435 |
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(5 |
%) |
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Other Operating Expenses |
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8,551 |
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6,462 |
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32 |
% |
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Operating (Loss) Income |
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(2,588 |
) |
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1,465 |
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(277 |
%) |
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Non-Operating Income and Expenses |
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8,544 |
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7,635 |
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12 |
% |
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Income Taxes |
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2,104 |
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3,081 |
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(32 |
%) |
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Net Income |
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3,852 |
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6,019 |
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(36 |
%) |
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Preferred Dividends |
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19 |
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19 |
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0 |
% |
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Income Applicable to Common Stock |
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3,833 |
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6,000 |
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(36 |
%) |
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Basic & Diluted Earnings Per Share |
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0.71 |
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1.11 |
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(36 |
%) |
CONTACT:
Warwick Valley Telephone
Michael Cutler
(845) 986-8080