SkyLine Membership Corporation

16
Where big things happen 2008 Annual Meeting Report SkyLine Membership Corporation

Transcript of SkyLine Membership Corporation

Where big things happen2008 Annual Meeting Report

SkyLine Membership Corporation

SkyLine Membership Corporation

Angie SextonDiane Barr

Dustin WeaverKaren Powell

Lynn McCoyMary Clayton

Michelle ScottNeal Tugman

Shauna PowersThose not pictured:

Annual Meeting Report for 2008

Annual Meeting Report for 2008

SkyLine Membership Corp.

Our People Make It Happen

Performance03

Experience07

New Network09

Partnerships11

Customer Service13

Education15

Community17

Commitment19

Financials20

Board of Directors24

1

Big things are happening and, quite simply, it's because of our employees. Without people likethose in this picture, our members would not be able to enjoy the most modern telecommunicationsservices available anywhere. They are the ones who see it coming, evaluate it, commit to it, master it and then smoothly integrate it into our lives. They're the reason why, in a quiet momenton a sunny afternoon, when you need it, from your telephone to the latest Internet applications,things work.

Annual Meeting Report for 2008

Big Thing #1: Performance

More than meeting the challenge

“We are committed to servingyour telecommunications needs.”

It is a pleasure to report on the accomplishments thatyour cooperative has enjoyed since our last report.While consumers have seen record lows in the dollarexchange and experienced record highs in fuel prices,SkyLine continues to maintain quality service at reasonable rates. Your cooperative is operated efficientlyby a dedicated staff of employees, finishing the 2007 yearfinancially sound with a net margin of $7,525,487.

Digital TV service was launched to limited areas in Julyof 2008 by our subsidiary, SkyBest Communications,after many years of testing and conducting field trials ofvarious technologies. In order to offer the best signal available, a Motorola head-end was installed atthe headquarters facility in West Jefferson, which provides superior quality standard-definition and high-definition channels.

The Fiber-To-The-Premise (FTTP) overbuild projectthat was initiated a few years ago is still underway, andI am pleased to report that over 20 percent of this enormous undertaking has been completed. As youmay recall, the purpose of this new fiber-optic networkis to provide members with a broadband connectionof virtually unlimited capacity. In addition to crystal-clear

telephone service, FTTP will provide the highest-quality HD television as well as broadband speedsmany times faster than what is currently available overour copper lines or from our cable competition. Additionally, the technology is future-proof, positioningSkyLine for the more advanced services to come, including some that aren’t even in development yet.While many of our members are already being servedvia FTTP facilities, those that aren’t can be assuredthat we will continue our aggressive build-out of thenew network.

The Motorola head-end isn’t the only new structurewe put up this year. We also built a new warehousefacility on property adjacent to the West JeffersonCustomer Center to house the construction and cablesplicing crews, as well as provide much-needed storage space for inventory.

SkyBest Communications, the wholly-owned subsidiaryof SkyLine, finished 2007 with a positive margin of$56,448. In addition to its recent digital TV rollout, as previously noted, SkyBest provides deregulated servicessuch as long-distance, business systems and Internet access to SkyLine subscribers.

RC Mitchell- President

Jimmy Blevins- Chief Executive Officer

03

$31,725,165

$26,921,414

$2,688,405

$7,482,201

$14,268,078

$148,424,246

38,840

29,709

133

$30,695,648

$25,653,454

$4,733,606

$9,541,315

$10,727,603

$135,746,221

38,920

29,989

132

$1,029,517

$1,267,960

($2,045,201)

($2,059,114)

$3,540,475

$12,678,025

(87)

(280)

1

Operating Revenues

Operating Expenses

Other Income/Expenses

Consolidated Margin

Capital Expenditures

Investment in Property & Equipment

Lines Serving Customers at Year End

Number of Members

Number of Employees at Year End

2007 2006 Net increase(decrease)

Total Access Lines(Combined)

N.C. Telephone CooperativesTotal Access Lines

(as of 6-30-08)

Highlights of Operations

38,250

38,7

53

38,7

24

38,9

20

38,8

40

38,4

41

38,500

38,750

39,000

2004 2005 2006 2007 2008ytd as of

September

Annual Meeting Report for 2008

SkyLine’s wireless affiliate, Carolina West Wireless(CWW), also completed its fiscal year with a positivemargin and continues to experience customer growth.The newly-developed Hickory market now has inplace four retail offices and more than 74 towers.CWW plans to implement EVDO (enhanced voice& data optimized) transmission in the coming year,which will allow the company to offer a number ofadvanced data wireless services. CWW will also introduce a new billing system.

Just as the economy has seen its share of changes, thetelecommunications industry is experiencing a greatdeal of turmoil as federal regulators struggle with howto restructure a much-needed change in the universalservice program. SkyLine, along with the NationalTelephone Cooperative Association (NTCA) and theNational Exchange Carriers Association (NECA), is working diligently to keep the federal legislators informed of rural America’s telecommunications needs.

The industry is facing yet another challenge with the reduction of access revenues, the amount interconnecting carriers pay to terminate a call ontolocal exchange carriers’ network. With the downwardtrend in access revenues, SkyLine is continually seeking new revenue streams from advanced services.

Our success is attributed in large part to the visionand guidance of our Board of Directors. Their leadership has improved the quality of life for all regions across our service area through their supportof economic development initiatives, educational, cultural and charitable activities and the allocation ofnecessary resources to enhance the cooperative’s corebusiness. The strength of this organization is alsomeasured by the dedication and commitment of our

employees. They do more than just provide excellenttelecommunication services--they are involved in thecommunity, themselves, supporting local charities andassisting with coaching and youth mentoring programs. At SkyLine, we believe our responsibilitygoes beyond simply connecting telephone circuits; itis about connecting with the communities where welive and work.

It is an honor to be serving as SkyLine’s new ChiefExecutive Officer, having been selected to replaceJohn Dixon, who retired on July 1, 2008, after serving five years in that role.

By way of brief introduction: I am a native of AsheCounty, graduated with an engineering degree fromNorth Carolina State University, and I have worked atSkyLine for over 23 years. While I have spent the lastseveral years managing various operations of the business, most of my experience has been in telecommunications technology.

On behalf of R. C. Mitchell, the Board of Directorsand our entire staff, let me close by saying that we aregrateful to have you as a member of SkyLine Telephone Membership Corporation, and we arecommitted to providing you with the best possible technology and customer service.

05

Atlantic . . . . . . . . . . . . . . . . . . . . .42,594Piedmont . . . . . . . . . . . . . . . . . . . .2,984Randolph . . . . . . . . . . . . . . . . . . . .9,574SkyLine . . . . . . . . . . . . . . . .36,054Star . . . . . . . . . . . . . . . . . . . . . . . .17,967Surry . . . . . . . . . . . . . . . . . . . . . .14,588Tri-County . . . . . . . . . . . . . . . . . . .3,488Wilkes . . . . . . . . . . . . . . . . . . . . .11,042Yadkin Valley . . . . . . . . . . . . . . . . .29,602

Jimmy C. Blevins, Chief Executive Officer R.C. Mitchell, President

Big Thing #2: Experience

Delivering the Ultimate Consumer Experience

“By focusing on the future and receiving valuable feedback from our customers, we continue

to develop innovative ways to make technology accessible, affordable and convenient.”

Bundling, the packaging of our key services and features at discounted prices, continues to be a valuableoption for our customers.

This year's major enhancement was the addition of Unlimited Long-Distance to our basic package, SelectTalk, and to our three SelectSurf Internet bundles. As existing services are enhanced and newservices are developed, the flexibility of this program allows us to offer additional combinations of servicesthat bring greater value to our customers.

Another new service introduced in the past year for ourcustomers is paperless billing. With this new option, you don’t have to wait to receive your bill in the mail. Instead, you can receive e-mail notification when yourlatest SkyLine/SkyBest bill is ready. You can then view the bill and pay it securely online. We think you’ll consider this a win-win because it’s convenient for you,plus it’s environmentally friendly.

Steven Hardin - Business Development Manager

07

Annual Meeting Report for 2008

Big Thing #3: New Network

Building our own future - up and out

The future of telecommunications is easy now to see, because it's already here. It's called the Triple Play: the delivery of Voice, Data and Digital Television over fiber-optic cable—speed-of-light technologywith virtually unlimited signal-carrying capacity and viability far into the future.

SkyLine is in the midst of an ambitious constructionproject that, when completed, will provide practicallyeveryone in our service area with a direct connectionto a complete fiber-optic network. This direct access,called Fiber-To-The-Premise (FTTP), will enable customers to enjoy Triple-Play services at the fastestspeeds and highest quality available. Build-out of theFTTP network will be a fairly long process involvingengineering, material procurement and coordination

of contracted crews for installation. We have madesubstantial progress, however, installing and bringingthe network's core equipment on line in the centraloffices, turning up over 60 nodes and extending operational FTTP service to several communities inAlleghany, Ashe, Avery and Watauga counties.

We have also completed construction of our ownhead-end for reception and distribution of digital television programming, and a new stand-alone building to house it at ourWest Jefferson headquarters.The centerpiece of the head-end is the new Simulsatsatellite dish, the industry standard for head-endstoday. It measures over 30 feet in diameter and over20 feet tall.

09

“Broadband is the driving force behind everything we do.”

Annual Meeting Report for 2008

Susie Hoosier - Broadband Services Director

Greg Gibbs - Field Services Technician

Big Thing #4: Partnerships

Communication is how business gets done

11

In addition to the support we regularly give schools,hospitals and other organizations vital to our region,we also enjoy mutually beneficial business-to-businessrelationships with them. This year we installed a 100megabyte Metro Ethernet connection at Shady ValleySchool, providing access to the Internet through

Education Networks of America. In addition to full Internet functionality, faculty can download learningmaterials, including videos and complete textbooks, inrecord time.

Sparta Elementary in Alleghany County is the nextschool on our list scheduled for a new Mitel 3300 ICPVoice-Over-IP phone system. The new system is state-of-the-art technology that provides telephones in

every classroom. It will also make voice mail available forthe first time to the entire faculty and staff.

We also continued our partnership with Alleghany Memorial Hospital, supplying them with a high-speedsymmetrical, fiber-fed Ethernet connection to the

Internet. Now, when time is critical, the hospital canaccess the expertise of off-site radiologists by sending x-rays online for them to interpret. The service also offers enhanced connectivity to local doctors' offices sothey can more efficiently serve the needs of the patientsin their practices.

“A successful relationship with a business customer,regardless of size, is based, first and foremost, on listening. It’s the best way - the only way – to providethe right solution.”

Kim Shepherd -Customer Service Manager

Annual Meeting Report for 2008

Big Thing #5: Customer Service

Still the biggest thing

“In today’s competitive world, the quality andlevel of understanding and communication with our

customers can be no less than 100 percent.”

The employees of SkyLine and SkyBest are, first andforemost, citizens of the communities we serve. Mostof them grew up in this area, and those who comefrom somewhere else soon feel right at home. For all of them, customer service comes a little more naturally and sincerely when they know the workthey do is for friends, neighbors and family.

Like SkyLine's founders, our employees today take customer service personally. It is this traditional sense ofa community connection that is fundamental to whowe are as a company and how well we do our jobs.

Shauna Powers- Customer Service Specialist

13

Annual Meeting Report for 2008

Big Thing #6: Education

Because knowledge is Power

One of the ways we work to boost prospects for ourregion's economy is with ongoing support for ourpublic schools.

For the third straight year, we've awarded a total of $55,000 to the school systems in our five-county service area through our SkyLine Technology Education Grant Program. Once again, the funds willbring new technology to the classroom in the form of SMART Boardtm interactive white boards and associated equipment.

SkyLine also contributed an additional $3,500 to eachhigh school across the region for athletic uniformsand equipment and, among other efforts, continuedits backing for a number of scholarships and uniqueeducational opportunities for individual students.

As the Mainstage Series sponsor for An Appalachian Summer Festival, SkyLine and SkyBest demonstrated

its support for both Appalachian State University andcultural arts in the region. We were also able to offerour customers discounts on tickets to any of theeleven shows scheduled for the Mainstage during thenationally recognized month-long event, includingperformances by such notables as Ricky Skaggs, JudyCollins, the Count Basie Orchestra, the Aspen SantaFe Ballet, Phoebe Snow and Cherish the Ladies.

Even with the digital age now upon us, reading is still fundamental to education. However, a modern library should also provide its patrons with access to information through the most modern technologyavailable, which is why, when the call went out forfunds to complete expansion of the Ashe CountyPublic Library, SkyLine stepped up as lead corporatedonor. The Board of Directors contributed $50,000to furnish and equip the new "SkyLine Teen Center,"blueprinted by design students from ASU with helpfrom the library's Teen Council.

15

“When we support education and provideleadership opportunities for young people, we’re

investing in the future of our communities.”Karen Powell

- Public Relations Director

Annual Meeting Report for 2008

Big Thing #7: Community

The Community Connection

1. Ashe County Armed Forces TributeSkyLine was a leading sponsor of this third annual event,held in August 2008 to honor both active-duty servicemembers and veterans. Presented by the Jeffersons RotaryClub Foundation, the gathering was aired live on UNC-TV,which will show it again in late October and early November. It was also broadcast over the Labor Day weekend on the Pentagon Channel to U.S. military installations in 171 countries. In 2006, the Secretary of Defense presented SkyLine with the Freedom Award for oursupport of employees who serve in the National Guard and Reserve.

2. Project TeamworkOur employee-led community outreach program has raisedthousands of dollars to provide immediate financial assistance to area families during times of crisis.

3. SkyLine Technology Education GrantsIn the program’s third year we presented a total of $55,000 tothe public school systems in our service area to provide moreclassrooms with SMART Boardtm interactive white boards andassociated equipment. The visual and interactive capabilities ofthe boards have proven highly engaging and effective.

4. Appalachian State University SkyLine’s subsidiary, SkyBest Communications, Inc., is theofficial telecommunications partner of ASU Athletics, andserved as Mainstage Series sponsor for the university's highlyregarded annual celebration of culture, art and our region.

5. Ashe County Public LibrarySkyLine was the leading corporate donor to the library’s expansion project, contributing $50,000 to the Furnishingsand Equipment Fund for the SkyLine Teen Center. The expansion is scheduled to be completed in 2009.

6. RecyclingEach year we partner with our area’s public schools to promote the benefits of recycling by enlisting their help incollecting outdated phone directories; in return, we make afinancial donation ($66,000 to date) which the schools usefor a variety of purposes, from purchasing library books andclassroom supplies to campus beautification.

7. ScholarshipsIn 2008, we awarded a total of $37,000 in college money to children of SkyLine members through the co-op’s Frank James - SkyLine Scholarship. Pictured are this year’sscholarship nominees.

8. American Heart Association (AHA)For many years, SkyLine has supported local efforts to benefit the AHA, providing the phone bank for the AsheCounty Heart Auction and sponsoring the Alleghany HeartAuction. In 2008, SkyLine employees from Ashe Countyalso fielded a team for the annual Heart Walk and raised over $2,000.

9. ‘08 FRS Youth TourSince 1996, SkyLine has sponsored area high school juniorson this five-day experience of a lifetime, a visit to Washington,D.C., including tours of cherished national landmarks, opportunities to see government in action and programs that emphasize the vital role of telecommunications in rural communities.

10. National Institute on Cooperative EducationPictured are the students who represented SkyLine at thisyear's NICE conference. The five-day event, held this year at UNC-Asheville, focuses on cooperative education andleadership development for rising high school juniors and seniors. (from l to r) Lauren Linker, Samantha Kerley,Christina Cole and Justan Reavis. Justan was selected as anAlternate Youth Ambassador, which means he will attendnext year's event as a junior counselor.

11. American Cancer SocietySince 1995, Skyline employees have raised over $106,000 inthe fight against cancer through special fundraising events,including the annual Prime Rib Dinner.

17

Annual Meeting Report for 2008

76 8

109 11

2

3 4 5

1

Big Thing #8: Commitment

Service and dedication

19

1) Karin Nichols 01/012) Jamey Miller 02/18 3) Greg Greene 05/20

4) Michael Lewis 07/015) Justin Dalton 07/236) Holly Beard 08/18

7) Michelle Scott 09/178) Todd Young 09/249) Myla Farmer 09/24

23) Shelby Waddell 09/27 24) Ronda Roten 11/22

25) Ray Ward 01/05Director

26) I.S. Cooper 04/05Director

27) Lynn McCoy 09/19

10) Kim Shepherd 01/0111) Joey Burgess 03/2312) Tommy Sturgill 03/3013) Adam Johnson 05/1814) Eric Holt 05/18

15) Tom Edwards 05/2616) Bill Brock 06/1517) Mike Miller 06/1518) Diane Barr 07/1619) Nancy Lewis 08/01

20) Tracy Critcher 08/1421) Joe Taylor 11/1622) Tim Miller 12/29

5 Years Service:

10 Years Service:

15 Years Service:

20 Years Service: 25 Years Service: 35 Years Service:

Donnie Howell • Gary Murphy • Sharon Hennis • Nancy Goodman • John DixonRetirees

John Dixon34 Years of Service

John retired as Chief Executive Officer onJuly 1, 2008. We thank him for his dedication to the cooperative and its members throughout his years of service,for the many contributions he has madein every position he has held and for his vision and leadership, especially during histenure as CEO.

John leaves SkyLine a better place, as is truewith all of our retirees. We deeply appreciatetheir time with us and offer our best wishesfor many long and happy years in this newphase of their lives.

6 7 8 9 10 11

1 2 3 4 5

12 13 14 15 16 17

18 19 20 21 22 23

24 25 26 27

R R R R R

Annual Meeting Report for 2008

4,084,0583,686,4499,043,8762,379,108

6,472463,568

19,663,531

6,564,868576,000

11,469,2322,001,2133,059,548

023,670,861

144,971,9773,392,733

59,536148,424,246

92,139,39556,284,851

99,619,243

2,130,1551,493,787

718,9971,880,7096,223,648

3,363,013838,716

2,123,712437,899

6,763,340

12,986,988

(4,917,587)91,549,84286,632,255

99,619,243

$

$

$

$

Operating Revenues:Basic local network service Network access and long-distance revenue Internet and other sales and services Other Less uncollectible Total Operating Revenues

Operating Expenses:Plant specific operationsPlant non-specific operationsDepreciation and amortization Customer operations Corporate operations Total Operating Expenses

Operating Income:

Non-Operating Income (Expenses):Investment incomeAllowance for funds used in constructionEarnings from equity investments (net)Gain on sale of investmentRealized gain (loss) on sale of securities available for saleInterest expenseTotal Non-Operating Income

Net margins before income taxesFederal and state income taxes (benefits)

Net Margins for the Year

Current assets:Cash and temporary investments Accounts receivable (less allowances) Investment in debt and equity securities Materials and supplies Deferred income taxes Prepayments and deferred charges Total current assets

Non-Current Assets:Investment in debt and equity securitiesGoodwillEquity investment Other investments (net) Notes receivable Prepaid post retirement benefitsTotal Non-Current Assets

Property and Equipment:Telecommunications plant in serviceTelecommunications plant under constructionNon-operating plantTotal Property and EquipmentLess, Accumulated DepreciationNet property and equipment

Total Assets:

LIABILITIES & CAPITALIZATION

Current Liabilities:Accounts payable and customer depositsAdvance billings and paymentsCurrent maturities on long-term debtAccrued liabilitiesTotal current liabilities

Non-Current Liabilities:Long-term debt, less current maturities Deferred compensationPostretirement benefitsDeferred income taxesTotal Non-Current Liabilities

Total Liabilities:

Capitalization:Accumulated other comprehensive income (loss)Patronage capitalTotal capitalization

Total Liabilities and Capitalization:

SkyLine Membership Corporation Consolidated Balance SheetYear Ended December 31, 2007

SkyLine Membership Corporation Consolidated Statement of Revenues and ExpensesYear Ended December 31, 2007

9,510,03011,147,8159,238,1311,915,283

(86,094)31,725,165

5,092,2402,465,8289,132,8133,995,1126,235,421

26,921,414

4,803,751

1,025,171141,098

1,548,9470

109,221(136,032)2,688,405

7,492,1569,955

7,482,201

$

$

Maintenance$7,558,068

21.82%

Non-Operating Revenue$2,824,437

8.15%

Miscellaneous$1,915,2835.53% Local Service

$9,510,03027.46%

Toll/Access$11,147,81532,19%

Other Sales & Service Income$9,238,13126.67%

Depreciation$9,132,813

26.37%

Interest on Debt$136,032

0.39%

Customer/Corporate Operations$10,230,53329.54%

Member Ownership$7,482,20121.60%

Uncollectible Revenue$86,094

0.25%

Federal & State Taxes$9,9550.03%

How our dollars are spent How our dollars are received

2120

Current assets:Cash Accounts receivable parent companyOther accounts receivable Prepayments and deferred chargesDeferred income taxes Total Current Assets

Non-Current assets:Equity investment Parent company capital credits receivableTotal Non-Current Assets

Property and equipment:Telecommunications plant in serviceTelecommunications plant under constructionTotal property and equipmentLess, Accumulated DepreciationNet Property and Equipment

Total Assets:

LIABILITIES & CAPITALIZATION

Current Liabilities:Accounts payable and customer depositsAccounts payable parent companyCurrent maturities on long-term debtAccrued liabilitiesTotal Current Liabilities

Non-Current Liabilities:Long-term debt, less current maturities Deferred income taxesTotal Non-Current Liabilities

Total Liabilities:

Capitalization:Capital stockAdditional paid-in capitalRetained earningsTotal Capitalization

Total Liabilities and Capitalization:

183,48945,7931,7932,2816,472

239,828

161,554912,566

1,074,120

5,771,501153,915

5,925,4161,535,4074,390,009

5,703,957

85,522515,982383,25976,155

1,060,918

2,300,602437,899

2,738,501

3,799,419

200,0001,000,000

704,5381,904,538

5,703,957

$

$

$

$

Operating Revenues:Basic local network service Network access and long-distance revenue Internet revenueOther revenueLess uncollectible Total Operating Revenues

Operating Expenses:Plant specific operationsPlant non-specific operationsDepreciation and amortization Customer operations Corporate operations Total Operating Expenses

Operating Income (Loss):

Non-Operating Income (Expenses):Investment incomeInterest on long-term debtLoss from equity investmentAllowance for funds used in constructionTotal Non-Operating Income

Income before income taxesFederal and state income taxes (benefits)

Net Income (Loss) for the Year

868,1451,877,9227,542,965

3,194(2,773)

10,289,453

1,706,8793,243,841

508,9681,562,1792,988,159

10,010,026

279,427

6,317(153,085)(71,322)

5,066(213,024)

66,4039,955

56,448

$

$

SkyBest Communications, Inc. Balance SheetYear Ended December 31, 2007

SkyBest Communications, Inc. Statement of Revenues and ExpensesYear Ended December 31, 2007

2322

24

SkyLine Membership CorporationBoard of Directors

SkyLine Membership Corporation is a local, member-owned cooperative, established in 1951 to bringtelephone service to rural residents of Alleghany, Ashe and Watauga counties. Today, SkyLine is the second-largest of nine telephone cooperatives in North Carolina. Through its 12-exchange network,SkyLine serves over 35,000 access lines across a five-county, 840-square-mile area in northwest NorthCarolina and east Tennessee.

Democratically governed by a nine-member board of directors representing the membership, SkyLine employs a staff of 128 and operates customer service centers in Seven Devils, Sparta and WestJefferson. Its corporate offices are located at 1200 N.C. Highway 194 North in West Jefferson. SkyLine, along with two other North Carolina telephone membership corporations, is an owner ofCarolina West Wireless, a regional wireless carrier operating in ten northwest North Carolina counties. In 1998, SkyLine established SkyBest Communications, Inc. as a wholly-owned subsidiaryto assume operations of SkyLine's deregulated businesses.

Seated left to right: I.S. Cooper, TreasurerBuster Burleson, Vice-PresidentJimmy Blevins, Chief Executive Officer,J.L. Shumate, Assistant SecretaryR.C. Mitchell, President

Standing left to right:Raymond A. Parker, II, AttorneyJoseph McNeilMolly GambillD.C. SmithJames L. Shepherd, SecretaryRay Ward

Annual Meeting Report for 2008

SkyBest Communications, Inc.Board of Directors

SkyBest Communications, Inc. is a wholly-owned subsidiary of SkyLine Membership Corporation. Established in 1998, SkyBest offers a variety of deregulated services including dial-up and broadband Internet, long-distance, business systems and network solutions. In its role as a competitive local exchangecarrier (CLEC), SkyBest has offered dial tone service to the West Jefferson/Jefferson communities of AsheCounty since 2003. Through its continuing Fiber-To-The-Premise (FTTP) network build-out, SkyBest introduced digital television services in July 2008 to limited areas served by SkyLine and SkyBest.

Today, SkyLine and SkyBest provide a wide variety of telecommunications services - from basic dial tone service toenhanced calling features like Caller ID and Voice Mail to long-distance, broadband Internet services, business systems and network solutions. More recently, the companies have begun deployment of FTTP technology to theircustomers, including digital television services to a limited area, with plans to continue an aggressive build-out of thisnew network.

Seated left to right:Dennis Gambill, Vice-President

Joseph McNeil, TreasurerJimmy Blevins, President

Buster Burleson, ChairmanJerry Roten, Secretary

Standing left to right:R.C. Mitchell, Assistant Secretary

James L. ShepherdHaskell McGuire

Raymond A. Parker, II, Attorney

25

Our mission is to provide competitively priced, high-quality products and services to our

customers, to meet their diverse needs. We recognize those who have an interest in our

organization and we will represent them with respect and integrity in all of our actions. For our

members/owners, we will be good stewards of their investment to ensure long-term financial

viability. For our customers, we will strive to identify their needs and continue to develop an

innovative, efficient and effective network. For our employees, we will equip them with the

opportunities and tools needed to be successful in their careers. For our communities, we

will be good corporate citizens and strive to enhance the quality of life in the areas we serve.

P.O. Box 7591200 NC Hwy 194 N.West Jefferson, NC 28694

(800) 759.2226 toll free(336) 877.3111 phone(336) 877.2020 fax

www.skyline.orgwww.skybest.com

West JeffersonSpartaSeven Devils