CEO's Report - West River Telecommunications Cooperative

Statements of OperationsDECEMBER 31, 2010 AND 20092010 2009OPERATING REVENUESLocal network services $ 4,306,660 $ 4,531,797Network access services 12,392,555 11,122,611Long distance network services 1,022,664 1,078,406Miscellaneous 1,194,293 1,188,698Telecom operating revenue 18,916,172 17,921,512Internet revenue 1,842,055 1,751,581Nonregulated sale and lease revenue 1,127,009 1,038,990Total operating revenues 21,885,236 20,712,083Operating ExpensesPlant specific operations 4,400,125 4,485,880Plant nonspecific operations 1,853,496 1,690,009Depreciation 4,645,896 4,456,386Customer operations 1,278,055 1,311,895Corporate operations 2,045,702 2,080,804Operating taxes, other 244,588 237,200Telecom operating expenses 14,467,862 14,262,174Internet expenses 1,046,192 1,078,581Nonregulated sale and lease expense 1,485,410 1,403,481Total operating expense 16,999,464 16,744,236Net Operating Margin 4,885,772 3,967,847Nonoperating MarginInterest income 683,713 894,558Dividend income 2,317,005 1,568,432Amortization of plant adjustment (492,213) (492,213)AFUDC 33,660 53,078Equity earnings 8,913,276 7,897,971Other nonoperating expense (53,540) (62,298)Net nonoperating margin 11,401,901 9,859,528Net Margin Before Interest and Income Taxes 16,287,673 13,827,375Interest Expense and Related Items 491,030 584,435Net Margin Before Income Taxes 15,796,643 13,242,940Provision for Income Taxes 2,751,423 2,581,783Net Margin $ 13,045,220 $ 10,661,1579WEST RIVER TELECOM