Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Q4 2022 Earnings Presentation
26 slides from Shenandoah Telecommunications's earnings presentation, Feb 22, 2023
Slide 1: Q4 2022 Earnings Conference Call
Q4 2022 Earnings Conference Call February 22, 2023
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 our business strategy, our prospects and our financial position. These statements can be
Slide 3: Chris French, President and CEO
Chris French President and CEO 3
Slide 4: Accelerating Pace of Construction and Sales
Accelerating Pace of Construction and Sales Glo Fiber Passings Released to Sales Glo Fiber Data Net Additions 79% CAGR 64% CAGR 4
Slide 5: Glo Fiber Snapshot After Four Years
Glo Fiber Snapshot After Four Years Proven FTTH Platform Strong Customer Satisfaction 147,000 passings in 17 greenfield markets1 Net Promoter Score of 65% Cost to pass - $1,1702 10x Internet Service Provider average 445,000 franchised passings Data Churn <1.1% since launch 44% Track Record of Growth
Slide 6: Jim Volk, SVP of Finance and CFO
Jim Volk SVP of Finance and CFO 6
Slide 7: Broadband Highlights - Full Year Results
Broadband Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 7.5% 9.2% 36.7% 36.1% margin margin 7
Slide 8: Tower Highlights - Full Year Results
Tower Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 6.9% 7.7% 62.6% 63.0% margin margin 8
Slide 9: Consolidated Highlights - Full Year Results
Consolidated Highlights - Full Year Results Revenue (in millions) Adjusted EBITDA (in millions) 9.0% 15.6% Consolidated revenue includes elimination of intercompany activity. 9
Slide 10: Proven Track Record of Strong Growth
Proven Track Record of Strong Growth Revenue (in millions) Adjusted EBITDA (in millions) 10% CAGR 16% CAGR Consolidated revenue includes elimination of intercompany activity. 10
Slide 11: Liquidity & Free Cash Flow
Liquidity & Free Cash Flow Liquidity (in millions) Free Cash Flow (in millions) 11
Slide 12: Debt Maturity & Other Liquidity Events
Debt Maturity & Other Liquidity Events Debt Maturity (in millions) • $30 million in tax refunds expected to be received in 1Q23 • $17 million in cash sale proceeds of certain spectrum assets likely to close in first half 2023 12
Slide 13: Ed McKay, EVP and COO
XG a Ed McKay EVP and COO
Slide 14: Integrated Fiber and Cable Broadband Network
Integrated Fiber and Cable Broadband Network 14
Slide 15: Broadband - Fiber Construction Metrics
Broadband - Fiber Construction Metrics Glo Fiber Franchise Approved Passings Glo Fiber Passings Released to Sales Government Grant Approved Fiber Passings1 Total Fiber Construction Backlog Passings 1 Q3'22 and Q'422 grant approved fiber passings exclude 3,000 additional passings to be constructed us
Slide 16: Broadband - Glo Fiber Operating Metrics
Broadband - Glo Fiber Operating Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 16
Slide 17: Vintage Glo Fiber Penetration
Vintage Glo Fiber Penetration Vintage Glo Fiber Penetration1 Avg. Terminal penetration 38% Passings released to 17 18 19 19 14 15 12 6 6 9 8 4 2 sales (000's) Quarter launched 1 Penetration rates as of 12/31/2022 17
Slide 18: Broadband - Incumbent Cable Metrics
Broadband - Incumbent Cable Metrics Revenue Generating Units (RGU) Broadband Data Average Revenue per User (ARPU) Broadband Data Penetration Broadband Data Churn 18
Slide 19: Broadband - Commercial Fiber Metrics
Broadband - Commercial Fiber Metrics MRR & MAR Sales Bookings Installed MRR & MAR1 Backhaul Connections Monthly Compression and Disconnect Churn2 1MRR = Monthly Recurring Revenue; MAR = Monthly Amortized Revenue 2Excludes impact of T-Mobile network rationalization 19
Slide 20: Tower - Metrics
Tower - Metrics Towers Tenants 20
Slide 21: Capital Expenditures
Capital Expenditures Capex Spending ($ in millions) $260 - $300 $35 - $45 $170 - $190 $13 - $18 $40 - $45 21
Slide 22: Q&A
Q&A AXSHENTEL
Slide 23: Appendix
HENTEL Appendix
Slide 24: 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 U.S. generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities
Slide 25: Adjusted EBITDA by Segment - Full Year Results
Adjusted EBITDA by Segment - Full Year Results Year Ended December 31, 2022 Corporate & (in thousands) Broadband Tower Eliminations Consolidated Net income (loss) from continuing operations $ 20,467 $ 9,512 $ (38,358) $ (8,379) Depreciation and amortization 63,175 2,416 3,308 68,899 Impairment expen
Slide 26: Broadband - Average Revenue per User (ARPU)
Broadband - Average Revenue per User (ARPU) Broadband - Residential and SMB ARPU Quarter Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Residential and SMB Revenue: Broadband Data $ 31,916 $ 27,741 $ 120,803 $ 104,434 Incumbent Cable 26,945 25,427 105,433 97,848 Glo Fiber 4,971 2,314
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