Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2021)
27 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 20, 2021
Slide 1: 2021 Shareholder Meeting
2021 Shareholder Meeting April 20, 2021
Slide 2: Board of Directors
Board of Directors Director Principal Name Age Since Occupation Thomas A. Beckett 53 2018 SVP, GC and Secretary of American Public Education, Inc. Tracy Fitzsimmons 54 2005 President of Shenandoah University John W. Flora 66 2008 Attorney and Shareholder of Flora Pettit PC Christopher E. French 63 1
Slide 3: Proposals
Proposals 1. Election of directors To elect Thomas A. Beckett, Richard L. Koontz, Jr. and Leigh Ann Schultz for a three-year term that will expire at the annual meeting of shareholders in 2024 2. Ratification of auditors To ratify the Audit Committee’s selection of KPMG LLP as the Company’s independ
Slide 4: 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 5: 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 6: Jim Volk, Sr. VP of Finance and CFO
Jim Volk Sr. VP of Finance and CFO
Slide 7: Broadband Financial Highlights
Broadband Financial Highlights ($ in millions) Revenue Adjusted OIBDA and margin % 5% $204.3 6% $193.9 4% 0.5% $81.5 $183.1 $16.6 $81.2 $78.3 $21.2 38% 34% 37% $22.7 $32.8 $30.4 $29.7 $155.0 43% 42% 40% $142.3 $130.7 2018 2019 2020 2018 2019 2020 Residential & SMB Commercial Fiber RLEC & Other See A
Slide 8: Tower Financial Highlights
Tower Financial Highlights Revenue Adjusted OIBDA and margin % $17.1 62% 60% 61% 31% $10.7 $13.0 30% 6% $12.2 6% $8.3 $7.8 63% 64% 64% 2018 2019 2020 2018 2019 2020 See Appendix for reconciliation of Adjusted OIBDA to Operating Income. 8
Slide 9: Consolidated Financial Highlights
Consolidated Financial Highlights x Revenue (in millions) Adjusted OIBDA (in millions) $241 - $248 $69 - $76 $10.5 - $17 - $18 $57.2 $11.5 $220.8 $49.4 $46.2 $10.7 $7.8 $8.3 $206.9 $17.1 $192.7 $13.0 $12.2 $90 - $94 $78.3 $81.2 $81.5 $224 - $230 $204.3 $193.9 $183.1 $(31.1) - ($39.9) ($40.0) ($35.0)
Slide 10: Consolidated Financial Highlights
Consolidated Financial Highlights x Operating Income (in millions) Net Income Per Diluted Share $2.53 $7 - $14 $2.48 $1.12 $0.93 ($0.7) ($1.1) $1.07 $0.89 ($3.0) $0.04 $0.05 $0.05 2018 2019 2020 2018 2019 2020 2021 Guidance Continuing Operations Discontinued Operations x 10
Slide 11: Cash Dividend History (per Share, Split Adjusted)
$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 x 1960 1962 1964 1966 1968 1970 1972 1974 Special 1976 Regular 1978 1980 1982 1984 1986 1988 1990 1992 1994 x 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Cash Dividend History (per Share, Split Adjusted) 2016 2018 2020 11
Slide 12: Adjusted OIBDA – CapEx and Debt & Liquidity
Adjusted OIBDA – CapEx and Debt & Liquidity Adjusted OIBDA – CapEx ($ in millions) Total debt and liquidity ($ in millions) Cash & Cash Equivalents ($10.5) Available Revolving Line of Credit ($17.6) Total Debt $697.9 ($63.2) ($99) - ($81) Effective Interest Rate of 2.31% $270.4 $195.4 $75.0 2018 201
Slide 13: Pending Transaction Sources and Uses
Pending Transaction Sources and Uses Pending Transaction Cash Sources & Uses ($ in millions) $2,145 $2,080 $195 $930 $1,950 $450 $700 Sources Uses 13
Slide 14: Dave Heimbach, EVP and COO
A\SHENTEL Always connected to you ee Dave Heimbach ~ So EVP and COO
Slide 15: Cable, Fiber, & Fixed Wireless Networks
Cable, Fiber, & Fixed Wireless Networks 15
Slide 16: Unique network platform with high growth potential
Unique network platform with high growth potential TARGET PO SITION Greenfield fixed wireless Incumbent Greenfield fiber overbuilder MARKET broadband overbuilder DYNAMIC M AR KET Higher density tier III / IV T YPE Various, but mostly rural Low density rural markets 2020/2026 TARGET HOMES 209,000 / 2
Slide 17: Incumbent Cable metrics
Incumbent Cable metrics REVENUE GENERATING UNITS (RGUS IN THOUSANDS) BROADBAND DATA AVG REVENUE PER USER (ARPU) BROADBAND DATA PENETRATION BROADBAND DATA CHURN 17
Slide 18: Glo Fiber metrics
Glo Fiber metrics REVENUE GENERATING UNITS (RGU) DATA AVERAGE REVENUE PER USER (ARPU) DATA PENETRATION DATA CHURN 18
Slide 19: Glo Fiber Market Update
Glo Fiber Market Update Passings Penetration Released to Target as of Sales Passings* Launch Date 12/31/2020 Harrisonburg VA 9,843 11,399 October 2019 18.6% Staunton VA 9,856 9,895 February 2020 13.8% Front Royal VA 4,237 4,933 March 2020 11.3% Winchester VA 4,716 9,957 March 2020 10.3% Salem VA 8,0
Slide 20: Beam extending broadband network reach
Beam extending broadband network reach HIGHLIGHTS 2020 OPERATING RESULTS SINCE 10/5/2020 LAUNCH Exclusively licensed mid-band spectrum – Deep 2.5/3.5 GHz spectrum holdings: between 30-90MHz per market Existing relationships — with tower owners and backhaul providers due to in-house wireless expe
Slide 21: Towers
Towers Towers Tenants 225 427 223 8% 6% 404 208 10% 42% 48% 47% 367 2018 2019 2020 2018 2019 2020 21
Slide 22: Capital Expenditures
Capital Expenditures (in millions) Broadband Glo & Beam Tower Other $157 - $168 $2 - $3 $120 $2 $100 - $105 $59 $67 $57 $6 $8 $19 $6 $58 $55 - $60 $43 $41 2018 2019 2020 2021 Guidance *Broadband excludes capex for Glo Fiber and Fixed Wireless 22
Slide 23: Pending Wireless Sale and Use of Proceeds Update
Pending Wireless Sale and Use of Proceeds Update T-Mobile exercised option to purchase Wireless assets operations Sales price of $1.95 billion determined through appraisal process and agreement with T-Mobile Expected timeline: Execute asset purchase agreement Obtain required regulatory appro
Slide 24: Chris French, President and CEO
Chris French President and CEO
Slide 25: Split Adjusted Price Per Share
Split-Adjusted Stock Price and Value of Original Share $60.00 $900,000 17,280 shares $49.88/shr $800,000 $50.00 Value of One Original FMTS $700,000 Value of One Original Share of FMTS Share Split Adjusted Price Per Share $40.00 $600,000 $500,000 $30.00 $400,000 $20.00 $300,000 $200,000 $10.00 1,440
Slide 26: Questions & Answers
AXSHENTEL Questions & Answers 26
Slide 27: 2021 Shareholder Meeting
2021 Shareholder Meeting April 20, 2021
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