Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — RBC Capital Markets 2009 Technology, Media and Communications Conference
35 slides from Shenandoah Telecommunications's conference presentation, Jun 9, 2009
Slide 1: Earle MacKenzie – EVP / COO, RBC Capital Markets Conference
Earle MacKenzie – EVP / COO June 9, 2009 RBC Capital Markets 2009 Technology, Media and Communications Conference Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our business strategy, our prospects and our financial position. Th
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures that are not determined in accordance with US generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities an
Slide 4: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 5: Shenandoah Telecommunications Company corporate structure
Allocation Subsidiary Wireline Entities Wireless Entities Shenandoah Telecommunications Company Shentel Cable Company Shentel Service Company Shenandoah Mobile Company Shenandoah Cable Television Company Shentel Management Company Shentel Communications Company Shenandoah Telephone Company Shenandoa
Slide 6: Business Overview
Business Overview Public company with 4,400+ shareholders ≈ 70% individual / 30% institutional Sprint PCS Affiliate of Sprint Nextel Profitable Strong growth Healthy balance sheet Continuity of ownership & management Focused business plan
Slide 7: Growth Strategy – Capitalize on Core Competencies
Growth Strategy – Capitalize on Core Competencies Wireless Increase penetration in existing PCS footprint Look for new wireless opportunities in surrounding geographic areas Wireline Attractive markets at reasonable prices Cable Focus on smaller less competitive markets Build clusters to gain operat
Slide 8: Segment Overview: Revenue and OIBDA by Segment
Revenue by Segment Operating Income Before Depreciation & Amortization (OIBDA) by Segment Segment Overview 12 Months Ending March 31, 2009 Total External Revenues = $150.9 million Segment OIBDA % Margin % of Total Wireless $58.3 54% 77% Wireline 22.0 66% 29% Cable 0.1 1% 0% Other (4.3) N/A -6% Total
Slide 9: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 10: PCS Overview
PCS Overview One of 3 remaining Sprint Nextel affiliates 2.3 million licensed POPs 2.0 million covered POPs 213k total subscribers 10.85% penetration of covered POPs 419 CDMA base stations 237 EVDO enabled cell sites 87.5% EVDO covered POPs $41,000 Estimated Average household income
Slide 11: Key Operational Metrics – PCS
Retail Subscribers (000s) Number of Cell Sites Churn (%) Penetration (%) Key Operational Metrics – PCS Period Ending EVDO Sites Non-EVDO Sites
Slide 12: Attractive Service Revenue Growth – PCS
Gross Billed PCS Revenue ($ millions) 1 Attractive Service Revenue Growth – PCS 12 Months Ending 1 Before credits and fees 20.8% CAGR
Slide 13: PCS Revenues
Billed Revenue ($ millions) PCS Revenues 12 Months Ending Up 16.8% Bad Debt Management Fee Service Credits Service Fee Net Revenue
Slide 14: PCS Revenue per Subscriber
Gross Billed Revenue per Subscriber 1 PCS Revenue per Subscriber Period Ending 1 Before credits and fees Voice Data
Slide 15: Wireless Segment
Reported Revenue ($ millions) OIBDA ($ millions) Wireless Segment 12 Months Ending 25.5% CAGR 1 Decrease in revenue between 3/31/2007 and 3/31/2008 is the result of the change in accounting for the Sprint Nextel contract amendment.
Slide 16: Capital Expenditures – Wireless
Capital Expenditures by Category ($ millions) Capital Expenditures – Wireless 12 Months Ending Other Capacity Coverage EVDO Mobile # Cell Sites % Covered POPs 77% 79% 85% 89% # EVDO Sites % POPs Covered N/A 27% 86% 92%
Slide 17: Agenda
Agenda Introduction and Shentel Overview Overview of Wireless Overview of Wireline Overview of Cable Financials
Slide 18: Wireline Customers
Wireline Customers 12 Months Ending March 31, 2009 24.1k LEC access lines 10.3k DSL subscribers 4.8k dial-up Internet subscribers 10.7k long distance subscribers Pending Acquisition of North River Telephone 1.0k access lines One FTTH community in service outside of LEC area Fiber Network Route miles
Slide 19: Wireline Customers
Access lines (000s) Internet Customers (000s) -0.9% CAGR 1 DSL only available within LEC area 2 Dial-up offered inside and outside the LEC area Wireline Customers 12 Months Ending
Slide 20: Wireline Overview
Revenue ($ millions) OIBDA ($ millions) Wireline Overview 12 Months Ending
Slide 21: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials
Slide 22: Cable TV Overview
Cable TV Overview Complimentary (with LEC business) 16k Homes Passed 8.3k Video Subscribers Offensive positioning (Outside ILEC) 44k Homes Passed 17k Video, 1.2k Internet, 0 Voice Subscribers One-way now, two way in 2009/2010 YE09 – HD, DVR, VOD, Internet, Voice
Slide 23: Cable TV
Subscribers (000s) Revenue ($ millions) OIBDA ($ millions) Cable TV 12 Months Ending 1 Includes Rapid Communications acquisition – December 2008 Digital Basic
Slide 24: Agenda
Agenda Introduction and Shentel Overview Overview of PCS Overview of Wireline Overview of Cable Financials
Slide 25: Key Financial Results – Continuing Operations
Net Income from Continuing Operations ($ millions) Revenue ($ millions) Key Financial Results – Continuing Operations 1 12 Months Ending 28.7% CAGR 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Decrease in revenue between 3/31/2007 and
Slide 26: Key Financial Results – Continuing Operations
Operating Income ($ millions) Operating Income Before Depreciation & Amortization ($ millions) Key Financial Results – Continuing Operations 1 12 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated.
Slide 27: Key Financial Results – Consolidated
Earnings Per Share - Continuing Operations 1 Earnings Per Share - Net Income Key Financial Results – Consolidated 12 Months Ending 1 Shentel Converged Services has been reclassed as discontinued operations. All results have been restated. 2 Includes $10.7 million write down of Converged Service Busi
Slide 28: Capital Expenditures by Segment
Capital Expenditures by Segment ($ millions) Total Capex 12 Months Ending Wireless Wireline Cable
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Slide 31: Non-GAAP Financial Measure – Billed Revenue per Subscriber
Non-GAAP Financial Measure – Billed Revenue per Subscriber Period Ending Gross billed revenue 1Q08 2Q08 3Q08 4Q08 1Q09 Wireless segment total operating revenues $24,407 $27,341 $27,526 $27,611 $28,804 Equipment revenue (1,300) (1,511) (1,410) (994) (1,270) Other revenue (2,055) (3,320) (1,876) (2,27
Slide 32: Non-GAAP Financial Measure – OIBDA, 12 Months Ended 3/31/2009
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $40,542 $13,926 ($1,684) ($4,589) $48,195 Depreciation and amortization 17,791 8,072 1,738 27,915 OIBDA $58,333 $21,998 $54 ($4,274) $76,110 Non-GAAP Financial Measure – OIBDA 12 Months Ended 3/31/2009
Slide 33: Non-GAAP Financial Measure – OIBDA, 12 Months Ended 3/31/2008
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $30,260 $14,200 ($1,336) ($5,082) $38,042 Depreciation and amortization 16,347 6,468 1,035 24,112 OIBDA $46,607 $20,668 ($301) ($4,820) $62,154 Non-GAAP Financial Measure – OIBDA 12 Months Ended 3/31/2008
Slide 34: Non-GAAP Financial Measure – OIBDA, 12 Months Ended 3/31/2007
Dollars in thousands Wireless Wireline Cable Other Consolidated Operating Income $21,473 $14,057 ($1,071) ($5,473) $28,986 Depreciation and amortization 15,544 5,610 1,094 22,487 OIBDA $37,017 $19,667 $23 ($5,234) $51,473 Non-GAAP Financial Measure – OIBDA 12 Months Ended 3/31/2007
Slide 35: Earle MacKenzie – EVP / COO, RBC Capital Markets Conference
Earle MacKenzie – EVP / COO June 9, 2009 RBC Capital Markets 2009 Technology, Media and Communications Conference