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AUD IT STATEMENT
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Reservation Telephone Cooperative and subsidiary as of December 31, 2016 and 2015, and the results of
their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in
the United States of America. – Moss Adams, LLP
OPERATING REVENUES:
2016
2015
Local Customer Services
$ 6,245,307
$ 5,903,869
Intercarrier Services
7,841,337
7,209,520
Universal Service and High Cost Support
10,905,870
9,049,032
Television Revenue
3,902,605
3,618,546
Internet Revenue
6,296,570
5,201,303
Miscellaneous Revenue
3,041,584
3,497,638
TOTAL OPERATING REVENUES
38,233,273
34,479,908
OPERATING EXPENSES:
Plant
10,148,575
10,126,610
Depreciation
10,083,512
8,058,119
Customer and Corporate
4,334,261
4,475,402
Other Operating Taxes
150,955
95,923
Non-regulated Expenses
10,091,276
8,083,368
TOTAL OPERATING EXPENSES
34,808,579
30,839,422
OPERATING MARGIN
3,424,694
3,640,486
NET NON-OPERATING INCOME
1,562,850
1,678,575
NETMARGINBEFORE INTEREST
AND INCOME TAXES
4,987,544
5,319,061
Interest on Long-Term Debt
2,032,129
2,273,355
Income Taxes
124,978
73,209
NET MARGINS
$ 2,830,437
$ 2,972,497
STATEMENT OF PATRONAGE CAPITAL:
Patronage Capital - Beginning of Year
$ 31,642,579
$ 29,090,139
Net Margins for Period
2,830,437
2,972,497
Federal Excise Tax Refund to Patrons
32,732
28,054
Retirement of Capital Credits
(371,165)
(448,111)
Patronage Capital - End of Year
$ 34,134,583
$ 31,642,579
Revenues & Expenses