Friday, 29 March 2013
OTELCO, INC.
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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OTELCO, INC.
Identification number
Not available
Country
United States of America
ZIP code and city
35121 - ONEONTA
Address
505, THIRD AVENUE EAST +1 205 625 3591 www.otelcoinc.com info@otelco.net
Legal form
Not available
Account
Consolidated
Incorporation date
1998
NACE 2 Sector
6190 - Other telecommunications activities
TM
ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.
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Company name
Listed Status
Active
MORE Credit limit
680,000 e
plans 3 types of reports:
Turnover (th e) Rating s-peek
TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
31/12/2010
31/12/2009
78,711
78,091
72,022
CCC
CCC
CCC
16.00%
16.00%
16.00%
100%
100%
100%
-26.69
-62.62
95.86
0.96
0.98
1.01
Current Ratio
2.94
3.04
2.81
Quick Ratio
2.75
2.87
2.64
Probability of default
Plus
Basic
31/12/2011
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
8.57
8.06
6.20
-17.76
-13.18
-89.46
Asset turnover
0.32
0.32
0.31
Interest paid weight
0.91
0.95
1.21
Gross Profit/Operating revenue
0.57
0.60
0.60
0.99
1.07
0.86
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
-26.69
0.44
2.04
2.63
-2.24
0.96
3.17
1.49
1.13
0.68
Current Ratio
2.94
2.28
1.20
1.00
0.52
Quick Ratio
2.75
2.09
1.10
0.92
0.50
Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
8.57
18.39
7.41
0.30
-15.07
-17.76
20.04
13.87
-13.84
-49.59
Asset turnover
0.32
1.38
1.29
1.34
1.28
Interest paid weight
0.91
0.01
0.09
0.00
-0.06
Gross Profit/Operating revenue
0.57
0.43
0.35
0.32
0.26
0.99
146.00
9.27
0.19
-6.69
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
6
8
10
12
9
Days Sales Outstanding (DSO)
23
47
50
53
43
Days Payable Outstanding (DPO)
5
23
34
40
40
Cash Conversion Cycle (DIO + DSO - DPO)
24
31
24
14
1
-
429
779
409
164
CCC
A
BBB
B
CC
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 6190 with financial data of year 2011.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.7729
0.748
0.6942
12
12
12
Total assets
245,556
241,736
234,297
Fixed assets
223,747
217,171
211,755
161,914
160,165
154,386
Tangible fixed assets
50,917
47,788
47,917
Other fixed assets
10,916
9,218
9,452
21,808
24,566
22,542
1,376
1,359
1,367
Exchange rate USD - EUR Number of months
Intangible fixed assets
Current assets Stocks
5,054
4,913
4,926
15,378
18,294
16,249
9,579
13,633
12,308
-9,559
-3,923
2,419
102
99
92
-9,661
-4,021
2,327
Total liabilities
255,114
245,659
231,878
Non current liabilities
247,685
237,569
223,864
Long term debt
209,527
203,154
190,002
38,158
34,415
33,862
7,429
8,090
8,014
-
0
0
Creditors
1,152
575
2,184
Other current liabilities
6,277
7,516
5,830
245,556
241,736
234,297
31/12/2011
31/12/2010
31/12/2009
Debtors Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds
Other non-current liabilities Current liabilities Loans
Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt
-
0
0
209,527
203,154
190,002
9,579
13,633
12,308
-
189,520
177,694
31/12/2010
31/12/2009
31/12/2011 Working capital
5,278
5,697
4,109
14,379
16,475
14,528
31/12/2011
31/12/2010
31/12/2009
Net Current Assets
Days Sales Of Inventory (DIO)
6
6
7
Days Sales Outstanding (DSO)
23
23
25
5
3
11
24
26
21
Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.7729
0.748
0.6942
12
12
12
Exchange rate USD - EUR Number of months Sales
78,711
78,091
72,022
1
8
-
0
0
0
Operating revenue / turnover
78,711
78,091
72,022
Total operating costs
59,675
58,368
56,802
Costs growth (%)
2
3
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
34,667
37,424
33,576
Depreciation
15,632
17,701
18,356
EBIT
19,036
19,724
15,221
-17,144
-18,751
-18,334
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
Financial P/L
-
-
-
17,144
18,751
18,334
19,148
18,510
17,643
1,891
973
-3,113
-
-
-
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
-
-
-
193
456
-949
1,698
517
-2,164
Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L
P/L before tax + Extr. and other P/L Taxation P/L for period
31/12/2011
31/12/2010
31/12/2009
Costs of Good Sold
34,008
30,887
28,614
Gross Profit
44,703
47,204
43,409
Other Operating Expenses
25,667
27,480
28,188
31/12/2011
31/12/2010
31/12/2009
17,330
18,217
16,191
-
-
-
Cash flow Added value
31/12/2011 Number of employees
330
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2010
31/12/2009
315
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
299
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
The company is a full service communications provider that offers a wide range of wireline telephone services to residents and businesses in North Central Alabama, Central Missouri and majority of Maine. The company was founded in 1998 for the purpose of acquiring and operating rural local exchange carriers. Its corporate headquarters is located in Oneonta, Alabama in the United States. The company provides wireline telephone services such as telephone with caller identification, call waiting, call forwarding, and voicemail services, digital cable television, high - speed Internet, and long distance service. It also provides network access to other wireline, long distance and wireless carriers for calls originated or terminated on the company’s network. In addition, the company publishes local telephone directories in rural local exchange carrier territories and offers other telephone related services that include leasing, selling, installing, and maintaining customer premise telecommunications equipment. The company offers ease and convenience of one bill system, local customer service, competitive rates, convenient automatic bank draft, and credit card payment. It serves portions of a five county area in Alabama including Blount, Etowah, Marshall, Cullman and Morgan counties, a five county area in Missouri including Cooper, Moniteau, Morgan, Pettis, and Saline counties, and a significant portion of the state of Maine. The company has local customer sales and service offices located in Alabama at Oneonta, Walnut Grove, Arab and Blountsville, in Missouri at Pilot Grove and Sedalia, and for the state of Maine at Bangor and Portland.
History
Not available.
Primary business line
Full service communications provider that offers a wide range of wireline telephone services to residents and businesses in North Central Alabama, Central Missouri and majority of Maine.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Wide range of wireline telephone services.
Size estimate
Not available.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Main customers
Not available.
Auditor/Advisor/Bank name
type
address
BDO USA, LLP Wells Fargo Shareowner Services
Auditor Transfer Agent
-
Board name
date of birth
nationality
function
Mr. Mr. Mr. Mr. Mr. Mr.
-
United States -
CHAIRMAN OF THE BOARD, PRESIDENT, CHIEF EXECUTIVE Officer Independent Director Independent Director Independent Director Independent Director Independent Director
-
-
Independent Director
Michael D Weaver William Bak Robert E Guth Howard J Haug Stephen P Mccall Andrew Meyers
Mr. William F Reddersen
Sharehoders (the first twenty shareholders ordered by Direct %) Rating:
CI FINANCIAL CORP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
CA 11.04
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
10.00 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
1472.05 1280 2012/09
Address : Not available
Rating:
MAX % HELD BY NOT LISTED SHAREHOLDERS Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2012/03
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
SOCHET IRA Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
6.73
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
Rating:
HUBER CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
2012/06
1.58
0.41
Total Assets (MIL $) Number of Employees Information date
4 2012/07
NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY (THE) via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US 0.98
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
15457 189645 0 2012/06
Address : Not available
Rating:
RAYMOND JAMES FINANCIAL INC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
0.81
Total Assets (MIL $) Number of Employees Information date
BRIDGEWAY CAPITAL MANAGEMENT INC via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct %
US -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
Total % Address : Not available
0.30
Information date
US 0.21
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
DE -
Operating Revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address : Not available
0.12
0 2012/06
Rating:
RENAISSANCE TECHNOLOGIES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
4149.5 22275.97 9596 2012/06
1245.2 947.51 42 2012/06
Rating:
DEUTSCHE BANK AG via its funds
43152.86 2800132.9
Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
100996 2012/06
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
WELLS FARGO & COMPANY via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 0.11
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
84601 1422968 269200 2012/06
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
BLOUNTSVILLE TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
BRINDLEE MOUNTAIN TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
10.7 6.59 2012/12
Rating:
GRANBY TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
CRC COMMUNICATIONS LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
CRC COMMUNICATIONS LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
COMMUNICATIONS DESIGN ACQUISITION LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/12
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
HOPPER TELECOMMUNICATIONS LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
I - LAND INTERNET SERVICES LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
OTELCO TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
OTELCO TELECOMMUNICATIONS LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
OTELCO MID - MISSOURI LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
MID - MAINE TELPLUS LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
13.4 100 2012/12
Rating:
MID - MAINE TELECOM LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
MID - MAINE COMMUNICATIONS, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/12
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
OTT COMMUNICATIONS Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
OTT COMMUNICATIONS Country ISO code NACE Rev. 2, Core code Direct % Total %
PINE TREE TELEPHONE AND TELEGRAPH COMPANY, THE
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
2011/12
2011/12
Rating:
SHOREHAM TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
4.86 6.03 2013/01
Rating:
SACO RIVER TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
0.1 2 2012/12
Rating:
PINE TREE TELEPHONE LLC Country ISO code NACE Rev. 2, Core code Direct % Total %
0.56 4 2013/01
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/12
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
OTELCO, INC.
Friday, 29 March 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741