New Ulm Telecom, Inc. Reports Third Quarter Results

November 16, 2011

New Ulm Telecom, Inc. (OTCQB: NULM.OB) reported revenues grew a modest 2% for the third quarter ended September 30, 2011.  Net income for the period was up 114% to $706 thousand or $0.14 per share.  The increase in net income was primarily the result of lower depreciation and amortization expenses as the company fully depreciates its legacy network as it moves to a new broadband network.

Revenues for the first nine months of 2011 increased 4.9% in large part due to increased revenues from the video, network access, data and non-regulated segments of New Ulm.  Net income for the period was up 47% or $0.33 per share driven by higher revenues and lower depreciation and amortization expense.  These positive were partially offset by higher cost of services as well as higher selling, general and administrative expenses.

As with most regulated telecommunications companies, New Ulm carries a high level of debt and currently has a working capital deficit of $256 thousand.  At the end of the quarter, shareholders’ equity stood at $53.51 million, however that includes approximately $50.45 million in goodwill and intangible assets.

New Ulm Telecom offers a wide variety of services including local and long distance phone service, dial-up and broadband Internet access, and video services.

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