Interest expense was $3.5 million, a decrease of $0.7 million or 16.3%.  The Company’s average debt outstanding
decreased approximately $4.8 million.  Long-term debt (inclusive of current maturities), was $43.3 million at year-end
2003, versus $52.0 million at year-end 2002.  The Company did not borrow any money on its revolving facilities in
2003.
Net losses on investments were $0.4 million, compared to a loss of $10.1 million from 2002.  Results in 2002 include
the sale of the VeriSign, Inc. stock for a loss of $9.0 million.  See Note 3 to the consolidated financial statements.
Non-operating income was a gain of $0.4 million, an increase of $0.5 million, due to an increase in patronage equity
earned from CoBank, the Company’s primary lender, and due to interest income from the proceeds on the sale of the
Virginia 10 RSA Limited partnership, offset by losses recorded for the Company’s portfolio of investments.
The Company provided for income taxes of $5.3 million in 2003, which is an effective tax rate of 35.2% due to the
effect of state tax apportionment rules and reduction in the liability for tax exposures.  On a normalized basis the
Company would have recorded taxes at an effective tax rate of approximately 39%.  Last year’s effective tax rate was
42.2% due to the impact of net operating loss carry forwards generated in several states with higher tax rates.  The
Company currently operates in four states.  Due to apportionment rules and geographic operations of subsidiaries
where the Company’s profits and losses arise, the Company is generating profits in states with lower tax rates, while
generating losses in states with higher tax rates.  The Company cautions readers that the current effective tax rate may
not be the same rate at which tax benefits or tax expenses are recorded in the future.  The Company’s state
apportionments, profits and losses and state tax rates may change, therefore changing the effective rate at which taxes
are provided for or at which tax benefits accrue.  In the near term, under existing operating results and current tax rates,
the Company anticipates a normalized effective tax rate will be approximately 39%.
Net income from continuing operations was $9.8 million, an increase of $12.7 million from 2002.  The results are
primarily made up of the improvement in the PCS operation and the one-time impact of the losses on the sale of
VeriSign stock in 2002.
Other income (expense) is comprised of non-operating income and expenses, interest expense and gain or loss on
investments.  Collectively, the net impact of these items to pre-tax income was an expense of $3.6 million for 2003,
compared to expense of $14.3 million from 2002.  The 2002 results were primarily the results of the previously
disclosed $9.0 million loss recorded on the sale of the VeriSign stock.
Operating income grew to $18.6 million, an increase of $9.3 million or 100%.  Revenue growth, primarily in the PCS
operation in addition to the reduced bad debt expenses, adjustments of management estimates, and the settlement of
disputed items with Sprint, all contributed to the operating income improvements. The Company’s operating margin
was 17.6%, compared to 10.0% in 2002.
Bad debt expense decreased $2.6 million to $1.8 million or 58.3%.  This decrease was due to more restrictive credit
terms for new PCS subscribers (limiting the high credit risk customers who obtained service), lower churn in the PCS
operation and improvement in the interexchange carrier segment of the business.  This expense is net of normal
recoveries and includes a recovery of $0.2 million for an interexchange carrier settlement the Company received in
2003 which was written off in 2002.
Administrative expenses increased $1.0 million or 17.1%.  This increase is a result of increased professional fees,
insurance and pension costs.  During 2003, the Company added several positions to expand the management team to
support the Company’s growing operations.