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Innovative • Expanding • Strategic • Awareness

2014 INTERACTIVE ANNUAL MEETING REPORT

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We continue to work tirelessly making the necessary advancements in our network to accommodate the growing needs of our customers.

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SkyLine has had an outstanding year. We have made exciting strides as we continue to be the technology company in our region. It is often said of weather in the High Country, “If you do not like the weather, just hang around for a few minutes, as it will change.” This can also be said of the telecom industry. Change is a constant, and we continue to work tirelessly making the necessary advancements in our network to accommodate the growing needs of our customers. While change is a known constant, another constant is our unwavering commitment to customer service.

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NC TELEPHONE COOPERATIVES TOTAL ACCESS LINES

AS OF 6/30/2014


Atlantic
Skyline
Yadkin Valley
Star
Randolph
Surry
Wilkes
Tri County
Piedmont
30,380
29,708
20,002
14,183
11,966
11,173
8,631
2,581
2,080

HIGHLIGHTS OF OPERATION

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VOICE & INTERNET SERVICES

SKYLINE & SKYBEST COMBINED
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 Above: Video Operations Coordinator Tyler Rash readies to review the latest news broadcast with the studio’s playback equipment.

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­­ The addition of live, local event coverage has been accomplished thanks to the team efforts of SkyZhone’s video production group. Pictured left to right are: Video Production Engineer Corbin Richardson, Videographer Angus Lamond, Executive Director of Engineering Operations Robbie Farmer, and Video Operations Coordinator Tyler Rash.

Innovative


Digital HD • Broadcast • Local

A key complement to SkyBest’s digital TV service has been the creation of a local content channel, SkyZhone HD, which features delayed broadcasts of area high school athletic events and other programs of regional interest.  Within the last year, the local channel has made marked progress with the addition of live event coverage, an expanded program schedule and a new studio for video production and a televised news show.

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THE VIDEO EXCHANGE

SkyBest’s video program content production subsidiary.

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 Above: The latest area to get fiber-based services in SkyLine’s systemwide overbuild is the downtown business community of West Jefferson.
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 SkyLine Inside Sales Coordinator Robin Miller discusses how Mountain View TV can include SkyBest TV in a money-saving bundle of services with owners Jerry Abreu (left) and George Santana (center).

Expanding


FTTH • Network • Community

A decade ago, SkyLine made the historic decision to embark on building a fiber-to-the-home (FTTH) network, a network so robust that it can deliver current and next-generation technology services to the cooperative’s customers. Voice, Video and Internet over fiber are crystal clear and less susceptible to interruptions caused by outside sources.

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When we decided to construct a complete fiber overbuild, it meant building a future-proof network, enabling us to offer a superior and more reliable service.

Jimmy Blevins, SkyLine CEO


 Above: SkyBest’s Zach Davis shows Jenny Schrum of Safe Haven Mini Storage how she can access real-time video surveillance of her business property via her computer and wireless phone through Total Connect Video Solutions.
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Strategic


Products • Solutions • Peace of mind

Security Systems are not a one size fits all product — you need a custom solution to meet your individual needs, and we offer free, on-site evaluations with local, qualified security technicians. Our latest service offerings, surveillance and automation, offered as standalone services or in conjunction with monitored security, add greater convenience and real-time management options for homes and businesses.

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honeywell-cameraUsing Honeywell Total ConnectTM Video Solutions, you can record and store video clips, take snapshots or have pictures emailed to your PC or mobile device upon an event.

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 Above: Employees come together from across the region to walk the track lined with luminaries in honor of survivors and in memory of those lost to cancer.

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 SkyLine and its employees have supported Relay for Life for 20 years, finding creative ways to raise money for cancer research including chicken barbecues, bake sales, prime rib dinners and most recently, an annual pledge campaign.

Awareness


Education • Advocacy • Commitment

Thirty years ago, a colorectal surgeon in Tacoma, Washington, faced cancer patients in his office every day. He decided to combine his love of marathon running with an effort to raise funds for his local American Cancer Society chapter. For 24 hours, he circled a track, covering 83 miles and walking the final laps to raise $27,000 in 1985. That singular event led by Dr. Gordon Klatt became the inspiration for Relay for Life. Today the signature fund-raising event for the American Cancer Society takes place in 5,000 communities in all 50 states and in 22 countries, with $4 billion raised to date.

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SkyLine Membership Corporation Board of Directors

Standing left to right: Jerry Roten, Raymond Parker, Attorney; Molly Gambill, Assistant Secretary and Treasurer; Tommy Joe Ward, Bill Burleson, Olan Bentley.

Seated left to right: Jimmy Blevins, CEO; Joseph McNeil, Vice President; R.C. Mitchell, President; James L. Shepherd, Secretary; D.C. Smith, Treasurer.­

SkyBest Communications, Inc. Board of Directors

Standing left to right: Raymond Parker, Attorney; Sharon Kasel; R.C. Mitchell, Assistant Secretary; James L. Shepherd, Chairman.

Seated left to right: Haskell McGuire, Secretary; Jimmy Blevins, President; Dennis Gambill, Vice President; Joseph McNeil, Treasurer.

How our dollars are spent

Total: $41,230,695

Maintenance: $13,011,706 / 31.56%

Depreciation: $9,699,964 / 23.45%

Member Ownership: $7,205,940 / 17.48%

Customer/Corporate Operations: $10,737,014 / 26.04%

Federal & State Taxes: $267,539 / 0.65%

Interest on Debt: $338,532 / 0.82%

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How our dollars are received

Total: $41,230,695

Local Service: $8,122,974 / 19.70%

Toll/Access: $13,548,100 / 32.86%

Bad Debt Expense: ($23,015) / -0.06%

Other Sales & Service Income: $14,502,255 / 35.17%

Miscellaneous: $2,228,510 / 5.40%

Non-Operating Revenue: $2,851,871 / 6.92%

FINANCIALS

Download a PDF of our Financial Section

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SERVICE & DEDICATION

Behind every successful company lies an employee base that is well-trained and dedicated to meeting the needs of its customers.

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Heart Association Activities

SkyLine supplies the phone bank for the annual Heart Fund Auction in Ashe County, and its employees, pictured here with Sir Purr of the Carolina Panthers at this year’s Heart Walk, field a team to raise funds for the American Heart Association.

Scholarship

As the cooperative’s flagship youth program and now in its 27th year, the Frank James-SkyLine Scholarship is presented annually to children of SkyLine/SkyBest customers.  Selection is based on academics, financial need and school and community involvement.

Christmas Charities

Along with making Christmas brighter for children through the Interagency Christmas Project, employees also supported Appalachian Senior Programs, delivering food and Christmas gifts here that are earmarked for elderly residents.Employees also help individual families in area counties with gifts, heating assistance and other needs.

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Directory Drive & Recycling

Now in its 22nd year, SkyLine’s Directory Collection Drive collects thousands of old directories with the help of 17 area public schools.  For their part, schools receive a quarter for each old directory they collect.  Pictured here are students from Westwood Elementary who help School Media Coordinator Laura Bowers to collect these books that are ultimately recycled for other uses.

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Project Teamwork

Project Teamwork is our employee-led community outreach program, which provides financial relief to area families during times of crisis. This program has contributed more than $100,000 to help our neighbors across the region since 1997.

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FRS Youth Tour

Hannah Weatherman and Luke Cullifer represented SkyLine at the Foundation for Rural Service Youth Tour to Washington, D.C.  They experienced a close-up view of our nation’s capital, including this visit to the Federal Communications Commission, and learned about the vital role of telecommunications in rural communities.

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Co-op Camp & Beyond

This summer, nine area high school students attended Cooperative Leadership Camp at White Lake. The program helps students build leadership skills while learning about the role of cooperatives. Two of our campers, Matt Carson and Deannh Milhalhe, were chosen to attend the National Institute on Cooperative Education at Virginia Tech in July, and one of our 2013 campers, Kayra Osborne, received the Jim Graham Cooperative Leadership Scholarship worth $1,000.
thank you for your continued support of SkyLine